Keep an eye on Albemarle (ALB).
While lithium prices are still low, shares of ALB have been pushing higher. In fact, since plunging to a March low of $106.35, it’s now back up to $130.31. From here, if ALB can break above current resistance, it could rally back to $140 near term.
According to Bank of America, “2023 marked a huge drop in lithium prices, as the market flipped from the 2022 deficit into surplus. Inventory levels in China for lithium carbonate were elevated in February but started to trend down in March [and pricing] started to show some strength. While EV sales growth has slowed, it is still 20% for the next few years, and thus we expect the global lithium market to tighten near-term,” as quoted by Barron’s.
The firm also believes lithium prices could average about $14,000 per metric ton this year from previous calls for $10,000.
