Albemarle Shares Plummets 3.44% as $420M Volume Drops 58% on Oversupply Fears

Albemarle (ALB) closed 3.44% lower on August 12, 2025, with a trading volume of $0.42 billion, down 58.49% from the previous day. This marked a reversal from earlier gains linked to lithium market dynamics.

The stock had previously surged 7% on July 2, 2025, following news that Chinese lithium producer CATL suspended operations at its Jianxiawo mine in Jiangxi province. The mine, which accounts for 3% of the 2025 global lithium supply forecast, faced an expired permit with no immediate renewal expected. Analysts noted the suspension could reduce a 60,000-tonne global oversupply in 2025, creating short-term upside risk for lithium prices. Albemarle, a major lithium producer, had recently reported strong Q2 earnings and updated guidance, but its shares remained volatile amid industry-wide supply concerns.

Albemarle also announced the unexpected departure of its chief operating officer, Netha Johnson, with no public explanation. Mark Mummert immediately succeeded Johnson, though the leadership change did not appear to directly influence the stock’s recent performance.

The lithium sector faces structural challenges, including oversupply and slower-than-expected EV demand growth. Despite this, Albemarle’s cost discipline and strategic restructuring position it to benefit from long-term demand tailwinds. Deutsche Bank recently raised its price target for ALB to $74, citing projected 15-20% annual lithium demand growth through 2030.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day resulted in a total profit of $2,340 from 2022 to the present. The maximum drawdown of -15.3% occurred on October 27, 2022, highlighting the inherent risks in short-term trading approaches.