Prime lithium producer Albemarle (NYSE:ALB) noticed its lithium gross sales enhance 410 p.c year-on-year within the fourth quarter of 2022, as the corporate renegotiated contracts and costs for lithium remained at excessive ranges.

Lithium internet gross sales reached US$2.06 billion, a rise of US$1.66 billion in comparison with the identical interval final 12 months.

“Our excellent 2022 outcomes reveal our sturdy benefits, notably within the rising lithium market,” Albemarle CEO Kent Masters mentioned within the report. “Our development potential extends properly past the present EV alternative.”

For 2023, power storage internet gross sales are estimated to vary between US$8.3 billion and US$9.8 billion, with volumes projected to be up 30 to 40 p.c in comparison with 2022. Pricing can be anticipated to extend, up by 55 to 65 p.c.

Albemarle owns lithium brine operations in Clayton Valley close to Silver Peak within the US, in addition to within the Salar de Atacama in Chile. The corporate additionally owns a 60 p.c stake within the Wodgina hard-rock lithium mine in Western Australia, in addition to a 49 p.c stake in Talison Lithium, which runs the huge hard-rock Greenbushes mine.

The corporate’s Australian Kemerton I conversion plant is working and producing lithium hydroxide, which stays topic to buyer qualification, whereas Kemerton II is progressing by commissioning.

As demand for electrical autos continues to extend, the corporate is anticipating world lithium demand to hit 3.7 million metric tons (MT) by 2030. Albemarle is estimating it would have between 450,000 and 650,000 MT per 12 months of useful resource lithium capability by then, with its conversion capability reaching 500,000 to 600,000 MT per 12 months.

“(Lithium) pricing wants to stay elevated as a way to help the incentives required to tackle these funding dangers,” Eric Norris, head of Albemarle’s power storage division, mentioned throughout the firm’s strategic replace presentation in January. “The (lithium) market is tighter than it was final 12 months. There’s vital provide approaching, however the demand development is extra vital.”

Final October, Albemarle secured almost US$150 million from the US Division of Vitality to construct a commercial-scale lithium supplies processing plant in Kings Mountain, North Carolina. The funds are a part of US$2.8 billion in grants awarded by the Biden administration for the event of electrical car battery manufacturing services within the US.

Earlier than the top of 2022, Albemarle acquired a location in Charlotte, North Carolina, the place it plans to take a position at the very least US$180 million to ascertain the Albemarle Know-how Park. The ability will probably be designed for novel supplies analysis, superior course of improvement and the acceleration of next-generation lithium merchandise to market.

In This autumn, the North Carolina-based firm posted internet gross sales of US$2.6 billion, a rise of 193 p.c. In the meantime, Albemarle’s full-year 2022 internet gross sales of over US$7 billion greater than doubled the corporate’s outcomes from 2021.

On Tuesday (February 14), Albemarle’s rival Livent (NYSE:LTHM) additionally posted constructive This autumn outcomes, saying it expects larger gross sales volumes this 12 months.

As of 9:00 a.m. EST on Thursday (February 16), shares of Albemarle had been buying and selling at US$272.79.

Don’t neglect to comply with us @INN_Resource for real-time updates!

Securities Disclosure: I, Priscila Barrera, at present maintain no direct funding curiosity in any firm talked about on this article.