White Petroleum in the Carbon-Neutral Era: ALB, SQM, and LTHM—A Timely Revaluation of Lithium Mining Assets

From a growth perspective, Albemarle’s (ALB) revenue compound annual growth rate (CAGR) over the past five years stood at -3.04%, while its net profit CAGR was 2.33%. The company’s free cash flow performed relatively well, with a CAGR as high as 17.24%. Nevertheless, from a financial standpoint, Albemarle is not an ideal investment target due to pronounced cyclicality—though this situation may change dramatically in the future, as lithium demand is expected to surge explosively. On the revenue front, Albemarle’s revenue has remained steadily growing over recent years, with a slight dip in 2020 attributable to pandemic-related disruptions. By business segment, bromine and catalyst operations have remained stable; future earnings growth will primarily stem from lithium sales. 4. Highlights for Q2 2021 (Unless otherwise noted, all percentage changes are year-on-year comparisons.) ・ Net income: USD 424.6 million, or USD 3.62 per diluted share, including gains from the sale of the Fine Chemical Services (FCS) business. ・ Adjusted diluted EPS: USD 0.89, up 4%. ・ Net sales: USD 773.9 million, up 1%; net sales rose 5% excluding FCS. ・ Adjusted EBITDA: USD 194.6 million, up 5%; adjusted EBITDA rose 13% excluding FCS. ・ Revised full-year 2021 guidance to reflect better-than-expected lithium performance, lower interest expenses and tax rates—partially offset by rising bromine raw material costs and supply chain disruptions; updated guidance also incorporates the FCS divestiture. ・ Completed the FCS sale on June 1, 2021, in a cash-and-stock transaction valued at approximately USD 570 million. ・ Commissioning of La Negra III/IV is underway, with commercial production expected in the first half of 2022. Driven by persistently strong demand for lithium and bromine products, Albemarle delivered another robust quarter, generating USD 195 million in adjusted EBITDA. The company is now in the final stages of two lithium projects, which—once fully operational—are expected to double its lithium production capacity to approximately 175,000 metric tons. This includes La Negra III/IV, whose construction is complete and commissioning ongoing. Albemarle remains firmly focused on advancing all lithium projects to meet customer demand and accelerate profitable growth. We now focus specifically on revenue and growth performance within the lithium segment. Lithium net sales totaled USD 320.3 million, up USD 36.6 million year-on-year (+13%), primarily driven by higher volumes (+17%), largely attributable to accelerated orders under long-term agreements. Average prices for carbonate and technical-grade products declined slightly year-on-year (-4%), resulting in a modest overall price decline for the quarter. Adjusted EBITDA for lithium reached USD 109.4 million, up USD 14.9 million year-on-year—mainly attributable to increased net sales and higher spodumene output from the Talison joint venture.

Bearish News? An 80-Billion-Yuan Lithium-Battery Leader Posts a 68% Sequential Drop in Q3 Net Profit

On the evening of October 15, Ganfeng Lithium—the leading Chinese lithium battery firm—released its third-quarter 2026 report. According to the announcement, the company achieved RMB 36.159 billion in revenue for the first three quarters of 2026, representing a 147.24% year-on-year increase; net profit attributable to shareholders of the listed company amounted to RMB 5.012 billion, surging 19,540.50% year-on-year—compared to merely RMB 26 million in the same period last year, reflecting an extremely low base. Specifically, in Q3 alone, revenue reached RMB 13.062 billion, up 109.03% year-on-year; net profit attributable to shareholders of the listed company totaled RMB 755 million, up 35.62% year-on-year. The company attributed this growth primarily to rising prices for lithium-series products and increased sales volume of lithium battery-series products. On a sequential basis, however, net profit attributable to shareholders fell to RMB 755 million in Q3 from RMB 2.42 billion in Q2—representing a roughly 68% decline quarter-on-quarter. For the first three quarters, net profit attributable to shareholders after deducting non-recurring gains and losses stood at RMB 4.636 billion, up 592.14% year-on-year; net cash flow from operating activities amounted to RMB 2.295 billion, up 634.77% year-on-year; basic earnings per share were RMB 2.40. In stark contrast to these sharply rising financial results, Ganfeng Lithium’s secondary-market performance has remained persistently weak. On October 15, Ganfeng Lithium’s A-share closed down 2.41% at RMB 40.01 per share—the lowest level of the year.

Albemarle Q3 Adjusted EBITDA Jumps on Lithium Pricing

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Albemarle Corp reported a significant Q3 2026 adjusted EBITDA increase driven by higher lithium pricing and strong Energy Storage performance. Net sales rose 19% to $1.55 billion, with the company lowering its full-year capital expenditure forecast.

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