McKinsey sees lithium demand stabilising and expects next upcycle

Investing.com -- McKinsey’s said lithium prices appear to have bottomed, with demand growth accelerating beyond electric vehicles due to rapid expansion in stationary storage.

The comments, made during a Bloomberg-hosted review, is similar to Albemarle’s estimate that stationary storage now accounts for about 20% of lithium demand.

McKinsey was optimistic about western automakers adopting advanced battery pack designs, boosting energy density and enabling EVs with over 600 miles of range and sub-10-minute charging times.

Such improvements could drive the next lithium upcycle by reaccelerating western EV adoption.

While, Mizuho maintained a Neutral rating on Albemarle (NYSE: ALB) with a $90 price target, citing lithium’s cyclical pricing and ongoing affordability and infrastructure challenges in the EV market.

“2025 will be the first year for Albemarle supply to significant undershoot demand. As the largest and among the lowest cost global lithium producers, the fact that ALB volume is only targeted at single-digit growth shows that supply curtailments are taking hold,” the note added.

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