Albemarle (NYSE: ALB), the world’s largest producer of lithium for batteries, posted a spike in quarterly profit on Wednesday due to a jump in prices for the ultralight metal.
The results reflected an improvement in the lithium market after a supply glut forced the company and peers last year to cut staff and curtail growth projects.
Albemarle said the average price it received for its lithium rose 61% during the quarter and its sales volumes increased 11%.
“We continue to see resilient demand fundamentals across our core markets, including energy storage, electric vehicles, and semiconductors,” CEO Kent Masters said in a statement.
The company, which operates across the Americas, Australia, Asia and Europe, reported second-quarter net income of $480 million, or $3.52 per share, compared to $22.9 million in the year-ago quarter.
Excluding one-time items, Albemarle earned $3.75 per share. By that measure, analysts expected earnings of $3.24 per share, according to IBES data from LSEG.
Shares gained 1% to $120 in after-hours trading on Wednesday.
The Charlotte, North Carolina-based company plans to hold a conference call on Thursday to discuss the results.
(Reporting by Ernest Scheyder; Editing by Nia Williams and Jamie Freed)
