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Albemarle (ALB) Inks Deals to Enhance Lithium Capacity in China

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Albemarle Corporation ALB recently announced its plan to invest in China to aid the expansion of its lithium conversion capacity. It has signed investment agreements with the Yangtze River International Chemical Industrial Park in the Zhangjiagang Free Trade Zone (Jiangsu province) and the Pengshan Economic Development Park in the Pengshan District (Sichuan province).

To initiate the execution, Albemarle will move forward with its design, engineering, and permitting plans to build a conversion plant at each site. Each of the sites has an initial planned production target of 50,000 metric tons of lithium hydroxide per annum. Subject to additional studies and customary approvals, the plants are expected to begin construction in 2022 and complete it by the end of 2024.

Albemarle is enthusiastic to expand its network of high-quality, battery-grade hydroxide production capacity in China and deliver the next generation of lithium hydroxide plants. The projects form part of the company’s Capital Excellence Program to reap the benefits in speed to market, lower capital intensity and product cost, and higher sustainability.

Shares of Albemarle have shot up 153.4% in a year, outperforming the industry’s rise of 25.2%. The estimated earnings growth rate for the company for the current year is 12.1%.

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Zacks Investment Research

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In its last quarter’s earnings call, Albemarle noted that it expects its performance for full-year 2021 to improve modestly on a year-over-year basis on a sustained recovery in global economic activities. The company expects net sales for 2021 to be between $3.2 billion and $3.3 billion. It sees higher Lithium sales and improving trends in Catalysts. However, expectations for the Bromine business have reduced due to an increase in raw material costs and supply chain disruptions. Albemarle expects adjusted earnings per share for 2021 in the band of $3.35-$3.70, up from its prior view of $3.25 to $3.65.

Albemarle Corporation Price and Consensus

Albemarle Corporation Price and Consensus
Albemarle Corporation Price and Consensus

Albemarle Corporation price-consensus-chart | Albemarle Corporation Quote

Zacks Rank & Stocks to Consider

Currently, Albemarle carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Element Solutions Inc. ESI and DAQO New Energy Corp. DQ, sporting a Zacks Rank #1 (Strong Buy), and Celanese Corporation CE, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Element Solutions has a projected earnings growth rate of 44.8% for the current year. The company’s shares have surged 84.8% in a year.

DAQO has a projected earnings growth rate of 572.7% for the current year. The company’s shares have soared to 108.1% in a year.

Celanese has a projected earnings growth rate of 131% for the current year. The company’s shares have jumped 48.4% in a year.


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Element Solutions Inc. (ESI) : Free Stock Analysis Report

Albemarle Corporation (ALB) : Free Stock Analysis Report

Celanese Corporation (CE) : Free Stock Analysis Report

DAQO New Energy Corp. (DQ) : Free Stock Analysis Report

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