Albemarle’s shares have climbed 76% over the past 12 months, driven primarily by a 35% rebound in average realized lithium prices and a 40% year-over-year increase in global electric vehicle (EV) battery installations. The company reported that during the fourth quarter of fiscal 2025, average sales volumes rose by 22% to 92,000 metric tons of lithium carbonate equivalent (LCE), as major automakers placed record orders for battery-grade materials. Investor interest accelerated following announcements of long-term off-take agreements with three leading EV manufacturers, each committing to purchase over 50,000 tonnes of LCE per annum beginning in 2027.

In fiscal 2025, Albemarle reduced its cash cost per tonne of LCE by 12% to $2,450, thanks to process optimizations at its La Negra facility in Chile and enhanced brine recovery techniques in Western Australia. The company’s adjusted EBITDA margin expanded to 32%, up from 24% a year earlier, contributing to free cash flow of $1.1 billion for the full year. Management highlighted that sustaining these cost improvements will be central to its 2026 guidance, with targeted cash costs of $2,300–$2,400 per tonne and EBITDA margins north of 35%.

Albemarle plans to invest $1.8 billion in capital expenditures through 2027 to expand capacity across its three core lithium sites and develop a new hydroxide plant in the United States. These projects are expected to boost total LCE production capacity by 25% over the next two years. The company also is exploring partnerships for a recycling facility in Europe, aiming to recover up to 20,000 tonnes of LCE annually by 2030. Analysts project that, assuming continued EV adoption growth of 30% per year, Albemarle could generate over $8 billion in lithium revenues by 2028.