Lithium producer Albemarle (ALB) closed up 2.71% today after hitting an all-time high of $298.17 in intraday trading. The shares closed at $295.68.
The gains for Albemarle, and across the lithium sector, came as Goldman Sachs upgraded lithium battery maker Freyr Battery (FREY) on projected higher demand for lithium batteries after the Inflation Reduction Act.
Freyer Battery is building a 35 GigaWatt factory that would be the largest in the United States outside of battery plants dedicated to electric vehicle makers. Shares of Freyer closed up 19.21% today, August 25.
Freyer reported second-quarter results on August 8. The company reported net income for the second quarter of 2022 of $4.7 million or $0.04 per diluted share compared to a net loss for the first quarter of 2022 of $0.30 per diluted share. Net income in the second quarter of 2022 was primarily due to a $33.4 million gain on the fair value adjustment to the company’s warrant liability. As of June 30, 2022, Freyer had cash, cash equivalents, and restricted cash of $488.4 million.
At the close Albermarle traded at a price-to-earnings ratio of 136.89 on trailing 12-month earnings. The price0to earnings ratio on projected 12-month forward earnings, however, is just 14.51.
Albemarle is up 29.99% in the last month as of the close on August 24 and ahead 23.48% for 2022 to date.
Albemarle is a member of my Jubak Picks Portfolio where it is up 200.18% since my August 10, 2018 pick. The stock is also a member of my long-term 50 Stocks Portfolio where it is up 221.67% since February 17, 2017.