According to a Financial Times report, Albemarle (NYSE:ALB), the world’s largest lithium producer, has slashed its lithium demand forecast for 2030 from 3.7 million tonnes to 3.3 million tonnes, a 10% decrease. Eric Norris, President of Lithium at Albemarle, stated that demand forecasts were lowered because EV manufacturers are pushing back the launch of electric vehicles in Western markets.
Elaborating further, Norris added that the delays in the launch of EV models, particularly outside North America, are prolonging the adoption of EVs in the U.S. According to the report, EV majors like Tesla (TSLA), Ford (F), and GM (GM) are already postponing the production of their EVs due to the slow consumer uptake in the U.S., including electric pickup trucks.
Spot lithium prices have plummeted 82% year-over-year to $13,500 per tonne, leading to industry losses. However, Norris anticipates that lithium prices will rebound sooner or later due to the “unsustainable level of current prices.”
Is Albemarle a Buy or Sell?
Analysts remain cautiously optimistic about ALB stock with a Moderate Buy consensus rating based on eight Buys, eight Holds, and one Sell. Over the past year, ALB stock has declined by more than 45%, and the average ALB price target of $142.59 implies an upside potential of 16.3% at current levels.
