Albemarle: The Outlook For Lithium Is Looking Extremely Favorable

Felix Fung
1.62K Followers

Summary

  • Albemarle Corporation is now down over 30% since November due to rising concerns around falling lithium prices.
  • The company's production and conversion capacity is expected to increase significantly by 2030, allowing it to capture much more growth.
  • The long-term outlook of lithium looks highly favorable amid the increasing adoption of EVs and the constraints around supply.
  • Current valuation looks significantly discounted on a historical basis, especially when considering its growth potential.

Silver Peak Lithium Mine

simonkr/E+ via Getty Images

Investment Thesis

Albemarle Corporation (NYSE:ALB) has declined over 30% from its all-time high in November, as it appears the market is concerned about the plummeting inflation dragging down lithium's pricing. However, I believe the pullback

This article was written by

1.62K Followers
Individual investor with four-year experience. I focus on long-term investing opportunities around companies with high-quality fundamentals or compelling turnaround potential. Currently studying business and economics at the University of New South Wales. Appreciate any feedback and comments.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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