Albemarle Stock (ALB) Plummets 11% as China Revives Major Lithium Mine - Market Reacts to Supply Shock

China just flipped the switch on a massive lithium mine restart—and Albemarle shareholders are feeling the shockwaves.

Supply Glut Fears Hit Hard

ALB tanked 11% in single-day trading as news broke that China's resuming operations at a key lithium site. That's not just a dip—it's a full-blown rout for one of lithium's biggest players.

Market Psychology at Play

Traders aren't just reacting to increased supply—they're pricing in the classic commodity cycle where increased production crushes margins for everyone. Suddenly, those bullish lithium forecasts look awfully optimistic.

Because nothing makes traditional markets panic like actual market dynamics—meanwhile crypto assets keep marching to their own rhythm.

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Specifically, the Chinese electric-vehicle-battery Maker Contemporary Amperex Technology Co. Ltd., known as CATL, is restarting the Yichun lithium mine. Lithium is the main component used in electric vehicle batteries and its price is traded like a commodity on global market.

The restart of the mine in China means more supply and lower prices for lithium, and that’s bad news for producers such as Albemarle. Based in North Carolina, Albemarle is the fourth largest producer of lithium in the world.

Big Mine

The Chinese mine being restarted by CATL produces 8% of the world’s lithium supply. Production at the mine was paused for maintenance, though some analysts speculate that it was done to drive lithium prices higher and boost the stocks of producers.

Lithium prices are currently around $10,500, up about $2,000 since July of this year. Lithium prices peaked at $85,000 in late 2022. At the same time, Albemarle’s share price peaked at $334.55. ALB stock is now trading at $72.43 a share, down 15% on the year.

Is ALB Stock a Buy?

The stock of Albemarle has a consensus Hold rating among 20 Wall Street analysts. That rating is based on six Buy, 12 Hold, and two Sell recommendations issued in the last three months. The average ALB price target of $81.53 implies 12.56% upside from current levels.