NEW YORK, Jan 6, 2026, 13:25 ET — Regular session
- Albemarle shares climb on fresh analyst target hikes and firmer lithium prices
- Energy storage demand is reshaping the lithium outlook after a long supply glut
- Traders look next to Friday’s U.S. jobs report and Albemarle’s upcoming results
Albemarle Corp (ALB.N) shares rose 9.9% to $160.62 in early afternoon trading on Tuesday, after closing at $146.13 the day before. The stock hit an intraday high of $164.88.
The move matters because Albemarle’s earnings and cash flow tend to track lithium prices, which have been squeezed by a supply glut since late 2022. Investors are now focusing on grid storage — large battery packs that store power for the electricity grid — as a fast-growing source of battery demand.
A Reuters report this week said lithium demand for energy storage is expected to grow 55% in 2026 after a 71% jump in 2025, tightening the outlook for lithium carbonate equivalent (LCE), a standard measure used to compare lithium supply and demand. “Looking ahead, energy storage is likely to become a game changer for lithium,” Jinyi Su, an analyst at consultancy Fubao, told Reuters. (https://www.reuters.com/sustainability/climate-energy/energy-storage-boom-strengthens-demand-outlook-beaten-down-lithium-2026-01-04/)
The rally also comes as investors position for Friday’s U.S. nonfarm payrolls report — the monthly jobs data — a key gauge for interest-rate expectations. “Keynote addresses from executives of many AI firms at the CES trade show in Las Vegas had reinvigorated the AI trade,” Art Hogan, chief market strategist at B. Riley Wealth, said in a Reuters report that also cited a Berenberg price-target increase on Albemarle. (https://www.reuters.com/business/wall-street-futures-muted-investors-pause-after-rally-2026-01-06/)
Jefferies analyst Laurence Alexander raised his price target on Albemarle to $167 from $152 and reiterated a buy rating, Barron’s reported. “Autonomous robots likely amplify stationary storage, accelerate EV adoption,” Alexander wrote, arguing that power-hungry AI computing and wider use of robotics could lift demand for lithium-ion batteries. Barron’s cited FactSet data showing Albemarle shares are up about 75% over the past three months, while only 36% of analysts rate the stock a buy. (https://www.barrons.com/articles/albemarle-stock-price-news-evs-ai-lithium-48534e38)
Lithium prices in China have been rising, helping lift sentiment toward producers. Trading Economics showed lithium at 127,500 yuan per metric ton on Tuesday, up 6.7% on the day and about 37% over the past month. 1
Peers moved in the same direction on Tuesday, with Chilean miner SQM up about 6.9% and Lithium Americas up about 2.8%.
But lithium remains volatile, and prices can turn quickly if supply returns faster than demand. Analysts have also flagged risks from alternatives such as sodium-ion batteries for some storage uses, and from slower electric-vehicle sales.
Albemarle has been cutting costs and selling non-core assets to protect its balance sheet through the downturn. It agreed in October to sell control of its Ketjen catalyst business and its stake in the Eurecat joint venture in deals worth about $660 million, with the transactions expected to close in the first half of 2026. (https://www.reuters.com/business/albemarle-divest-ketjen-control-eurecat-stake-660-mln-deal-2025-10-27/)
