Al Root
Things appear to be turning around for a tiny element -- lithium -- that is at the center of battery technology powering so much of today's technology.
After some lean years, Wall Street feels ready to recommend lithium mining stocks again.
Tuesday, Deutsche Bank analysts Corinne Blanchard and David Begleiter upgraded some lithium shares to Buy, feeling "more optimistic" about the sector in 2026.
Begleiter upgraded shares of Albemarle to Buy from Hold. The new price target is $185 a share.
Albemarle stock was up 3.7% at $175.68 in morning trading, while the S&P 500 and Dow Jones Industrial Average were down 0.2% and 0.6%, respectively.
Blanchard upgraded shares of Lithium Argentina and SQM to Buy from Hold. Her Lithium Argentina price target is $8.30 a share, up from $3.75. Her SQM price target is $88 versus $55 previously.
Lithium Argentina shares were up 6.7% at just under $8 in morning trading. SQM shares were up 2.5% at $79.70.
Optimism is welcome. It's been a long winter for the sector, since EV enthusiasm and growth sent benchmark lithium prices to about $84,000 a metric ton in late 2022. Then, lithium production expanded, and EV demand growth slowed, which pushed lithium prices below $9,000 a ton. Albemarle stock went from more than $320 a share to below $50 over that span.
Now, lithium capacity curtailments and rising demand for utility-scale battery storage applications have pushed lithium prices higher, to about $18,000 a ton recently. Albemarle stock has tripled from recent lows, but Wall Street is warming to the possibility of more gains ahead.
"In 2025, the Lithium sector [was] shaped by pricing volatility and bursts of bullish sentiment driven by China potentially reducing its production volumes on permitting issues and restrictions," wrote the analysts. "Later in the year...we have seen a more sustainable sentiment, with what we believe is potentially a return to a fundamental cycle for the industry."
Overall, 46% of analysts covering Albemarle stock rate the shares a Buy, below the average 55% Buy-rating ratio for stocks in the S&P 500. Still, that ratio for Albemarle was just 30% a few months ago. Shares have picked up six new Buy ratings recently, according to FactSet.
The Buy-rating ratio for Lithium Argentina is 82%, up from 64% a few months ago. The Buy-rating ratio for SQM stock is 50%. That's actually down a little over the past few months.
SQM stock's run might explain some of that. Through early trading on Tuesday, SQM stock has gained more than 80% over the past three months. Albemarle stock has performed similarly, but Lithium Argentina stock has gained closer to 50% over that span.
What all the ratings and price action signal to investors is that the lithium market is recovering, and higher lithium prices are expected in 2026 and beyond.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 13, 2026 11:11 ET (16:11 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments