Albemarle Corporation

Albemarle had a mixed Q1, with net sales below market expectations though EBITDA was up nearly four times to $1.6 billion resulting in an earnings beat. Albemarle selected a site for their U.S. Mega-Flex lithium processing facility in Richburg, South Carolina, and announced restructuring their MARBL joint venture in Australia. The company has advanced the Kemerton trains and the U.S. Mega-Flex facility, demonstrating its confidence in the long-term growth of the lithium business. Albemarle continues to expand its global lithium resource and conversion capacity, including the expansion at Silver Peak in the US and the Kemerton conversion facility in Australia. The company also plans to construct a lithium transformation and recycling facility in the EU. Besides, Albemarle launched Ketjen Corporation. Overall, Albemarle continues to make strategic investments and expansions to meet the growing demand for lithium in the energy storage and electric vehicle markets. While adjusting expectations based on current market pricing, the company remains poised about the long-term outlook for lithium and its position in the industry. With its strong track record and ongoing investments, Albemarle anticipates to continue driving growth and innovation in the lithium market for years. We give Albemarle Corporation a ‘Hold’ rating with a revised target price.