Albemarle (ALB) to Set up Lithium Technology Park in Charlotte
Albemarle Corporation ALB announced on Dec 13 that it purchased a location in Charlotte, NC, to build Albemarle Technology Park (“ATP”). ATP is a top-notch facility designed to accelerate the release of next-generation lithium products to market. The company will make an investment of about $180 million toward building the facility.
Albemarle anticipates the new facility to be operational by early 2025.
Innovations from the new site will improve lithium recovery and enhance the company's manufacturing methods. The facility’s innovation might introduce new forms of lithium that will aid revolutionary battery performance. The company anticipates ATP to develop improved process technologies to liberate new lithium resources, increase sustainability and enable cost-effective lithium recovery.
Albemarle aims to invest in the EV battery supply chain in the United States to be a pioneer of advanced lithium materials for next-generation energy storage. The company's work significantly expands North Carolina's leadership in the developing clean energy economy.
The State of North Carolina granted Albemarle an incentive package of about $13 million to build the advanced lithium material research, process development and product innovation facility in Mecklenburg County, NC. The company expects to create around 200 jobs at ATP.
Albemarle is a leading manufacturer of highly engineered specialty chemicals for various end markets, including petroleum refining, energy storage, consumer electronics, construction and automotive.
ALB logged total revenues of $2.09 billion for the third quarter of 2022, marking 152% growth from the year-ago figure. The company benefited from increased tolling volumes and the La Negra III/IV expansion in Chile. Tight market conditions led to strong demand and favorable pricing in the quarter. The company reported earnings of $7.50 per share in the third quarter of 2022, whereas it reported earnings per share of $1.05 a year ago.
The company tightened its adjusted EPS for 2022 to $19.75-$21.75. The previously expected adjusted EPS was $19.25-$22.25. ALB sees strength in lithium pricing and end markets. However, it might face challenges in major end markets (including consumer and industrial electronics, and building & construction) due to bromine-related softness.
Price Performance
Shares of Albemarle have gained 4.1% in the past year against a 2.2% decline of the industry.
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Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Sociedad Quimica y Minera SQM, Innospec IOSP, and Reliance Steel RS. While SQM flaunts a Zacks Rank #1 (Strong Buy) at present, ISOP and RS carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sociedad’s 2022 earnings per share is $13.13, suggesting 540.5% growth from the year-ago reported figure. Earnings estimates have moved 1.5% north in the past 60 days. SQM has a trailing four-quarter earnings surprise of 37.4%, on average. Its shares have gained 50.4% in the past year.
Innospec has projected a year-over-year earnings growth rate of 30.4% for the current year. The Zacks Consensus Estimate for the company’s current-year earnings is pegged at $6.26. Earnings estimates have been revised 5.6% upward in the past 60 days. IOSP has a trailing four-quarter earnings surprise of 25.6%, on average. Shares of IOSP have gained 12.7% in a year.
Reliance Steel expects earnings of $28.71 for the current year, indicating a year-over-year growth rate of 29.8%. The consensus estimate for RS’s earnings for the current year has been revised 0.06% upward in the past 60 days. It has a trailing four-quarter average surprise of 13.6% on average. RS has gained 26.8% in a year.
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