Albemarle Surges 7% as Chinese Mine Closure Sparks Supply Fears $1.02 Billion Trade Hits 79th Rank

On August 11, 2025, Albemarle (ALB) surged 7.00% with a trading volume of $1.02 billion, ranking 79th in the market. The rally followed news that Chinese battery giant CATL suspended operations at its Yichun lithium mine, a project expected to supply 3% of global lithium output by 2025. The shutdown, triggered by an expired permit, sparked fears of a supply crunch and boosted lithium futures, with analysts noting potential reductions in the 2025 surplus. Retail sentiment for ALB shifted to “bullish” on Stocktwits, reflecting renewed investor optimism.

Despite short-term gains, Albemarle faces broader challenges in the lithium sector. UBS downgraded the stock to “Sell” due to prolonged oversupply and price risks, while Wells Fargo maintained an “Equal Weight” rating with a raised price target to $75. The company also announced a quarterly dividend of $0.405 per share, payable in October, signaling commitment to shareholder returns. However, analysts caution that weak EV demand and regulatory shifts under President Trump remain headwinds for long-term growth.

A backtested strategy of purchasing top 500 high-volume stocks and holding them for one day yielded a 166.71% return from 2022 to 2025, outperforming the benchmark by 137.53%. This highlights the role of liquidity concentration in short-term performance, particularly in volatile markets like the lithium sector. Albemarle’s recent volatility aligns with this dynamic, as liquidity-driven trades capitalize on supply shocks and market sentiment shifts.