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Albemarle (NYSE:ALB) -6.3% in Tuesday’s trading after cutting its 2030 lithium demand forecast, saying the shift to electric vehicles in the U.S. and Europe is moving slower than expected.
The company told the Financial Times it now believes 3.3M metric tons of lithium carbon equivalent will be needed globally by 2030, down from its previous forecast of 3.7M tons of LCE, as automakers are delaying the launch of electric vehicles in Western markets.
The FT comments from Albemarle (ALB) executive Eric Norris came after lithium prices already have plunged nearly 80% since the start of last year to levels the company sees as “unsustainable” in order to trigger the supply investments needed to meet long-term demand growth.
Benchmark lithium prices fell another 2% on Tuesday to ~$13.3K/metric ton.
Ford Motor said Tuesday it is cutting prices for its all-electric 2023 Mustang Mach-Es by $3,100 to as much as $8,100.
Albemarle (ALB) shares have now surrendered nearly all gains amassed since reporting better than expected Q4 earnings last week.
Other lithium producers also trade lower, including Sigma Lithium (SGML) -12.3%, Atlas Lithium (ATLX) -8.7%, Lithium Americas (LAC) -6.4%, Standard Lithium (SLI) -5.8%, Arcadium Lithium (ALTM) -5.6%, Ioneer (IONR) -4.4%, Piedmont Lithium (PLL) -3.2%, SQM (SQM) -1.6%.
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