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Albemarle Corp ALB

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Raising Our Albemarle FVE to $200 as Investor Day Brings Clarity on Lithium Growth Plans

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

Our key takeaway from Albemarle’s investor day held on Sept. 10 was greater clarity around the company’s lithium capacity expansion plans. Management targets 410,000 to 460,000 metric tons of capacity by the end of Wave III and Wave IV, which we think is likely by the end of the decade. This planned volume growth is above our previous forecast. After updating our model to incorporate higher volumes, we are raising our Albemarle fair value estimate to $200 per share from $165. Our narrow moat rating is unchanged.

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Company Profile

Business Description

Albemarle is the world's largest lithium producer. Our outlook for robust lithium demand is predicated upon increased demand for electric vehicle batteries. Albemarle produces lithium from its salt brine deposits in Chile and the U.S. and its hard rock joint venture mines in Australia. Albemarle is also a global leader in the production of bromine, used in flame retardants. The company is also a major producer of oil refining catalysts.

Contact
4250 Congress Street, Suite 900
Charlotte, NC, 28209
T +1 980 299-5700
Sector Basic Materials
Industry Specialty Chemicals
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 5,900

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