Although Albemarle (NYSE: ALB) has been producing lithium for over a century, investors' excitement for the stock has only recently begun to really heat up. Expectations of rapid growth in the electric vehicle market have been pushing the company's shares higher, lithium being a key component of those vehicle's rechargeable batteries.
Albemarle stock has risen 162% in the past 12 months, as of this writing. However, it's now roughly 10% below the peak it touched early this year. Does that make it a buy?
Largely due to soaring electric vehicle production and sales, annual lithium demand is expected to nearly quadruple to more than 1.1 million tons of lithium carbonate equivalents (LCE) by 2025 from roughly 300,000 tons in 2020. According to company management, around 68% of total lithium output is consumed by batteries right now. Lithium demand for batteries is expected to account for 85% of that 1.1 million tons in 2025. And by 2030, batteries are expected to account for 92% of lithium being used.
Source Fool.com