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Lithium prices -45% by 2021, Morgan Stanley says in cutting Albemarle, SQM

Published 02/26/2018, 08:46 AM
© Reuters.  Lithium prices -45% by 2021, Morgan Stanley says in cutting Albemarle, SQM
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  • Albemarle (NYSE:ALB) -3.7% premarket as Morgan Stanley (NYSE:MS) downgrades shares to Underweight from Equal Weight with an $85 price target, cut from $100, forecasting lithium prices to plunge 45% by 2021.
  • Stanley says new lithium projects and planned expansions by the largest producers in Chile “threaten to add” ~500K metric tons/year to global supply by 2025, and battery electric cars would have to comprise 31% of global sales in 2025 from less than 2% currently to “clear the market."
  • The firm also has material concerns on the supply side following the recent Chilean government agreement with SQM, which the firm also downgrades to Underweight; SQM -2.4% premarket.
  • Notable Calls says this is the type of call that could send ALB and AQM down 7%-10%.
  • Now read: 2 Early Lithium Companies With Management To Succeed


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