Top Lithium Stock Albemarle Reduces 2023 Outlook, but Business Is Still In Overdrive
Lithium prices have been plummeting this year as new production comes online to meet surging demand from electric vehicles (EVs) and energy grid storage solutions (big batteries to store power for later usage). However, it's a healthy situation for the economy. Lithium prices skyrocketed to unsustainable levels in 2022 due to a lack of supply. Currently, lithium carbonate, a key ingredient in EV batteries, is down some 70% from highs but back to where it was priced just in late 2021. This development brings a little relief to EV automakers as they scale up their own production without worrying about excessively expensive basic material costs.
Nevertheless, uncertainty in lithium prices has done a number on lithium mining stock Albemarle (NYSE: ALB). Shares are down nearly 50% from all-time highs set in the second half of 2022, and management did lower its outlook for revenue and profitability in 2023 due to current market pricing conditions. But is the situation really that dire for this top lithium mining operation?
Bear in mind that Albemarle, a global mining company that has been around for decades, made a hard pivot to lithium in the last few years. However, it takes substantial time to get a new mine up and running. 2022 was the year production really started to take off and reach a profitable scale.
Source Fool.com
Albemarle Corp Stock
With 25 Buy predictions and 3 Sell predictions Albemarle Corp is one of the favorites of our community.
With a target price of 174 € there is a hugely positive potential of 59.96% for Albemarle Corp compared to the current price of 108.78 €.
