Mizuho Upgrades Albemarle as Battery Storage Demand Shifts Lithium Balance

Mizuho upgraded lithium miner Albemarle to outperform from neutral on Oct. 14, citing strong demand for battery energy stationary storage systems and a shift in lithium market balance to favorable territory.

The bank set a $130 price target, 33% above Albemarle’s closing price Tuesday. Shares had fallen 31% year to date through the report, partly amid weakness in lithium prices.

Lithium carbonate is expected to rise from $18,375 to $22,500 per metric ton by the end of 2027. A delay to the resumption of upstream production at Contemporary Amperex Technology, if regulatory roadblocks persist, could further intensify lithium demand.

Mizuho analyst John Roberts described lithium as volatile and capital-intensive. He also pointed to demand exceeding expectations, constrained new supply and long project lead times as factors tightening the near-term supply-demand outlook.