Albemarle Stock Plummets 11% as China Restarts Lithium Mine
Albemarle Corporation (ALB) shares tumbled 11% following reports that Contemporary Amperex Technology Co. Ltd. (CATL) is restarting lithium production at its Yichun mine in China. The facility accounts for 8% of global lithium supply—a critical component in electric vehicle batteries.
Lithium prices currently hover NEAR $10,500, down sharply from their 2022 peak of $85,000. Market analysts suggest the production pause may have been a strategic move to support prices. Albemarle, the world's fourth-largest lithium producer, now trades at $72.43—a 15% year-to-date decline.
Wall Street maintains a consensus Hold rating on ALB stock. The mine's reopening signals increased supply pressure in the lithium market, potentially extending the commodity's bearish trend.
