Lithium prices resume rise on strong demand, new supply challenges

Sep. 19, 2022 11:27 AM ETAlbemarle Corporation (ALB), LTHM, LITSQM, LAC, PLL, SGMLBy: Carl Surran, SA News Editor6 Comments


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Lithium names including Albemarle (NYSE:ALB) and Livent (NYSE:LTHM) continue to rise Monday as lithium carbonate prices in China rose to record highs on strong electric vehicle demand; both stocks are up more than 2%.

Other relevant tickers include (LAC), (PLL), (SGML), (NYSEARCA:LIT)

According to Bloomberg, lithium carbonate jumped to a new record Friday of 500,500 yuan/ton ($71,315) in China, after nearly tripling in the past year and more than 1,000% higher than a COVID low touched in July 2020; prices of lithium hydroxide are also gaining and closing in on an all-time high set in April.

SQM (SQM), the world's second-largest lithium producer, forecast a "very tight market" for lithium in the coming years in an investor presentation last week.

The China Passenger Car Association projects EV sales in the country will hit a record 6M this year, double the total in 2021, while lithium producers are struggling to bring new projects online and secure financing of approvals for future developments.

Albemarle (ALB) "is a cash machine at current lithium prices and is moving as fast as it can to bring on new capacity," Gary Gambino writes in a bullish analysis posted on Seeking Alpha.

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