UBS Group AG: Expects lithium prices to rise at least 9% over the next three years. Albemarle Corporation (ALB.US) in the United States surged 7.5% on Wednesday, leading the S&P 500.

On Wednesday, one of the world's largest lithium producers, Albemarle Corporation (ALB.US) from the United States, closed up by 7.5%, becoming one of the strongest performers in the S&P 500 index of the day. Prior to this, UBS Group AG released an analysis report stating that if there were a large-scale and long-term supply interruption in the Chinese lithium industry, it could affect up to 15% of global lithium production, directly driving the stock price of Albemarle Corporation higher. Other lithium producers also saw a synchronous increase in their stock prices: Sigma Lithium (SGML.US) surged by 11.4%, Lithium Americas (LAC.US) rose by 3.6%, and Sociedad Quimica y Minera de Chile S.A. Sponsored ADR Pfd Series B (SQM.US) rose by 2.8%. UBS Group AG analysts stated that due to the impact of the shutdown of lithium mines in China, they predict that between 2025-2028, the price of lithium spodumene will increase by at least 9%, up to 32%, and the price of lithium chemical products will also see an increase in the range of 4%-17%. The report also mentioned several key events impacting lithium supply: Zangge Mining suspended production on July 14; CATL's lithium ore mine in Jingxiaowu suspended production on August 10; 7 lithium mica mines in Yichun area face the risk of production suspension after September 30; additionally, Citic Guoan's Qinghai Salt Lake lithium production base has also implemented production restrictions. Based on the above assessments, UBS Group AG has upgraded Albemarle Corporation's rating from "sell" to "neutral" and set a target price of $89. Analysts stated that potential further actions in the Chinese lithium supply chain might pose a greater challenge to the previous view of "Albemarle Corporation facing long-term price pressure" (i.e. reducing the downside risk of Albemarle Corporation's stock price).