After falling consistently in recent months, (NYSE: ALB) stock reversed course this week and was trading up 10% as of 10 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.

With the lithium stock plunging 37% since the beginning of February through last week, investors sensed a great opportunity to scoop up shares of the world's largest lithium miner. Bumper numbers from Albemarle and lithium prices rebounding after a steep recent fall proved to be the perfect catalysts for investors to hit the buy button.

Lithium carbonate prices hit 19-month lows on April 24 on oversupply concerns and fears of declining electric vehicle (EV) sales. Sales of new energy vehicles (NEV) in China, in particular, slowed down considerably in the first quarter after the government withdrew cash subsidies. With a price war also ensuing in the EV industry thanks to Tesla's aggressive price cuts, customers postponed or canceled purchases in anticipation of even lower prices.

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Source Fool.com