Albemarle Stock Price Drops to $91.64 in 2025 – Lowest Since 2020 Amid Lithium Market Slump
Albemarle shares plunged to their lowest point since 2020 due to falling lithium prices and market uncertainties. Discover why lithium’s price drop is impacting the world’s top lithium producer and what analysts predict for Q2 and beyond.
Albemarle (ALB), the leading global lithium producer, experienced a sharp decline in its stock price, falling 7.6% to $91.64 in mid-afternoon trading—its lowest level since November 2020. This marked Albemarle as the largest decliner on the S&P 500 on Tuesday.
Key Highlights
- Baird lowered Albemarle’s price target from $170 to $127 amid continued weak lithium prices.
- Analyst Ben Kallo noted lithium prices remain at or below the lower end of expectations, signaling a challenging Q2 for Albemarle.
- TrendForce reported lithium prices hit a 2024 low in June and anticipate continued softness in July.
Baird’s revised outlook reflects lithium trading near or below $15 per kilogram, restraining Albemarle’s revenue prospects. The company’s Q2 earnings report is scheduled for July 31.
Ongoing Lithium Price Pressure
TrendForce highlighted a notable price drop last month as battery manufacturers focus on reducing inventories. July’s lithium demand is expected to remain subdued, with prices hovering between 80,000 to 90,000 Chinese yuan per ton ($11,000 to $12,375), a range considered sensitive to market fluctuations.
Despite some supply-side reductions, overall lithium supply continues to surpass demand, keeping prices under pressure.
US Election Impact on EV Market
Analyst Ben Kallo also emphasized uncertainty surrounding the 2024 U.S. elections, which could influence electric vehicle (EV) incentives and production decisions. This political ambiguity might lead to production hesitations among automakers awaiting clarity on potential changes to EV tax credits.
Market participants should prepare for volatility as the election approaches, affecting lithium demand tied to the EV sector.
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