Albemarle Hits Fresh 52-Week High: What's Driving the Stock?

Albemarle Corporation’s ALB shares hit a fresh 52-week high of $169.62 yesterday, before retracing slightly to close the session at $169.33. 

ALB’s shares have shot up 83.6% over the past year. The company has also outperformed the Zacks Chemical - Diversified industry’s 21.2% decline over the same time frame. The rally has been driven primarily by a rebound in lithium prices and improving demand expectations from the electric vehicle (EV) and energy storage markets. 

Let’s take a look at the factors that are driving ALB stock. 

Expanding Lithium Capacity and Project Progress Aid ALB

The gain reflects a combination of fundamental and market-driven catalysts. Lithium prices have rebounded from trough levels, supported by tightening supply and strong demand in China and globally and improving demand forecasts from EVs, grid-scale energy storage and new battery applications tied to AI and data centers, which collectively have boosted market sentiment. 

The company aggressively optimized its cost structure and strengthened financial performance during a volatile lithium cycle. The company expects to deliver roughly $450 million in cost and productivity improvements for full-year 2025, having already achieved more than $300–$400 million in annual run-rate savings through workforce reductions, streamlined management and manufacturing efficiency gains, while boosting production at high-performing assets such as La Negra.  

Albemarle is steadily expanding its global lithium conversion capacity through high-return projects, helping boost productivity and support strong customer demand. In the third quarter of 2025, the company recorded higher Energy Storage sales volumes driven by record output from its integrated facilities. Key projects are also advancing well, including the Salar yield improvement initiative in Chile, now operating at 50%, and the Meishan conversion plant in China, which is ramping up ahead of schedule. 

ALB’s Zacks Rank & Other Key Picks

ALB currently sports a Zacks Rank #1 (Strong Buy). 

Other top-ranked stocks in the Basic Materials space include LSB Industries, Inc. LXU, Agnico Eagle Mines Limited AEM and AkzoNobel N.V. AKZOY. 

At present, LXU and AEM sport a Zacks Rank #1, while AKZOY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for LXU’s current fiscal-year earnings is pinned at 36 cents per share, indicating a 56.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, with an average surprise of 141.3%. Its shares have popped around 3.2% over the past year. 

The Zacks Consensus Estimate for AEM’s current-year earnings stands at $7.87 per share, implying a 86.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 12%. AEM’s shares have rallied roughly 131.5% over the past year. 

The Zacks Consensus Estimate for AKZOY’s current-year earnings is pegged at $1.47 per share, indicating a year-over-year rise of 5%. AKZOY’s shares have gained 19.3% over the past year. 

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This article originally published on Zacks Investment Research (zacks.com).

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