Lithium Leader Plummets Nearly 10% the Day After Earnings

Albemarle Corporation, the leading lithium stock, plunged 9.49% on the New York Stock Exchange, closing at $158.93 per share and erasing about $1.6 billion in market value in a single day. Trading volume reached 2.01 million shares, and the company’s market capitalization now stands at roughly $18.7 billion.

The previous day, Albemarle reported its fourth-quarter 2025 results and projected global lithium demand of 1.8–2.2 million tonnes in 2026—an increase of 15–40% year over year—emphasizing strong demand from energy storage systems and electric vehicles.

In January, based on a rebound in lithium prices, both Baird and HSBC upgraded their ratings on Albemarle to “Buy,” setting target prices of $210 and $200 respectively, which helped fuel a rally in the stock.

With assets in the U.S., Chile and Australia, Albemarle is one of the world’s largest lithium producers and a key supplier to electric vehicle battery and large-scale energy storage supply chains. Although a collapse in lithium prices led to substantial losses and reduced capital spending from 2023 to 2025, cost-cutting measures combined with expectations of a recovery in lithium demand and prices have refocused attention on a potential performance rebound after 2026.