Understanding the Rise of Albemarle Stock in February

Falling prices, rising volume

There's very little lithium producers can do about falling prices in the near term, and Albemarle's sales declined by 10.1% year over year in Q4 on the back of a significantly weaker price of lithium. That particularly hit home because Albemarle's core energy storage sales volume actually rose 35% year over year in the quarter. Underlying demand for lithium is still strong, driven by the demand for electric vehicle (EV) batteries.

What changed in February

While all of those issues continue to influence investors' thinking, Albemarle received some good news in February. First, despite the doom and gloom, the price of lithium carbonate is actually up 8.2% in 2024, and most of that increase came at the end of February. Second, both Albemarle and SQM reported earnings, and both sets of management said they expect sales volume increases in 2024. Albemarle's management thinks its energy storage volume will increase by 10% to 20% this year, while SQM expects its sales volumes to increase approximately 5-10% during 2024, subject to market conditions with global demand increasing by at least 20%, supported by electric vehicle sales growth globally and increasing demand for battery materials.

Where next for Albemarle

SQM CEO Ricardo Ramos believes average lithium prices will be