Albemarle gains as lithium prices rise, driven by booming energy storage demand despite flat EV sales.

Albemarle Corporation is seeing renewed growth as lithium prices rebound, fueled by strong demand for energy storage systems (ESS) that use lithium batteries. In Q1 2026, Albemarle reported earnings per share of $2.95 and adjusted EBITDA of $664 million. While electric vehicle sales remain flat, the rapid 117% year-to-date growth in ESS demand is now the main driver for the company. Despite concerns about lithium supply from China returning, Albemarle trades at attractive valuations around 6 times adjusted EBITDA and 12 times EPS, supported by a strong balance sheet and potential for increased cash flow if lithium prices continue to rise.