Proudly sponsored by

Good times are ahead for lithium miners as prices continue to surge

The battery material that’s key to the electrification of transportation. 
Image: Cristobal Olivares/Bloomberg

Good times are ahead for producers of lithium, the battery material that’s key to the electrification of transportation.

Albemarle Corp., the world’s No. 1 miner of the silvery, white metal, boosted profit forecasts for the year as lithium prices soar due to demand from electric vehicles. The third biggest miner, Livent Corp., did the same.

The popularity of electric vehicles has driven prices for battery metals sharply higher, even sparking fears of shortages of materials like lithium, cobalt and nickel. Lithium supplies are a concern in particular because there’s no substitution for it in electric vehicle batteries. A gauge of lithium prices more than doubled in the first four months of this year after surging 280% last year.

Albemarle raised its profit and sales guidance for the full year, citing pricing in its lithium and bromine businesses. The Charlotte, North Carolina-based company’s first-quarter earnings also topped expectations. Shares jumped as much as 19% to $256.46 in after-market trading.

Livent almost doubled its 2022 earnings guidance on higher price assumptions for the year. Shares rose as much as 31% to $28.62 Wednesday, the biggest intraday gain on record.

© 2022 Bloomberg

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

SEARCH COMPANIES
Enter company name or share code:

ECONOMIC DATA  

  CPIThe Consumer Price Index (CPI) measures monthly changes in prices for a range of consumer products Apr 2022 5.90%
  CPI ex OERThe Consumer Price Index excluding Owners’ Equivalent Rent (CPI ex OER) measures monthly changes in prices for a range of consumer products excluding Owners’ equivalent rent that measures changes in the cost of owner-occupied housing Apr 2022 6.40%
  RepoThe rate at which the Reserve Bank lends money to the country’s commercial banks and set by the Reserve Bank’s Monetary Policy Committee. May 2022 4.25%
  Prime lendingThe Prime Lending Rate is the rate of interest that commercial banks will charge their clients when issuing a loan (home loan or vehicle finance) May 2022 7.75%

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: