Albemarle Stock Could Test $230 Shortly

May 23, 2023

Lithium stocks, like Albemarle, are coming back strong.

For one, electric vehicle sales are set to accelerate. According to the International Energy Agency (IEA), “Global sales of electric cars are set to surge to yet another record high this year, expanding their share of the overall car market to close to one-fifth.”

Better, according to Stellantis CEO Carlos Tavares, there’s not enough lithium to go around for the industry’s plans. “We know that we need lithium. We know that we are not producing as much as we need. We have right now 1.3 billion cars (that are) internal combustion engines powered on the planet. We need to replace that with clean mobility. That will need a lot of lithium,” he said, as quoted by The Detroit News.

No wonder lithium stocks are pushing higher again, including:

Albemarle (ALB)

The last time we mentioned ALB, it traded at $184 on May 8.

Today, it’s up to $217.52, and could see higher highs. Not only is ALB getting a boost from the lithium supply-demand story, the company just announced a definitive agreement with Ford Motor. ALB will deliver battery-grade lithium hydroxide to support the automaker’s ability to scale electric vehicle (EV) production, according to the press release. Albemarle will supply more than 100,000 metric tons of battery-grade lithium hydroxide for approximately 3 million future Ford EV batteries. The five-year supply agreement starts in 2026 and continues through 2030.

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