Albemarle, a leading global producer of lithium, bromine and catalyst solutions, expects lithium industry demand to reach 1.14 million MT LCE (lithium carbonate equivalent) by 2025—approaching approximately 30% CAGR—driven by increasing EV sales volumes and battery sizes.

With battery costs declining and performance improving, there is an increasing need for higher-quality lithium. The security of supply is essential to underwriting the global auto OEM investment in vehicle electrification, the company said during a presentation to investors.

Albemarle estimates its net sales for 2021 will be between $1.3 and $1.4 billion, with an adjusted EBITDA margin of 32-34% estimated for 2021, growing to 43-47% in 2026.

Albemarle said that the projected growth in lithium demand cannot be met without leveraging the largest and most highly concentrated resources in the world; Albemarle has access to 3 world-class resources.