Baird and KayBanc Downgrade Albemarle Corporation (ALB)

Albemarle Corporation (NYSE:ALB) is included in our list of the 9 Cheap Solid State Battery Stocks to Invest in Now.

A person inspecting a lithium-ion battery that is being recycled.

Despite the stock’s recent increase, Albemarle Corporation (NYSE:ALB) was given a double downgrade this week as analysts became more concerned.

Citing poor financial health, including a narrow 3.93% gross margin and negative earnings, as well as worries that lithium price increases would be speculative, Baird downgraded its rating on Albemarle Corporation (NYSE:ALB) from ‘Neutral’ to ‘Underperform’ on July 29, 2025.

KeyBanc followed suit on July 30 and downgraded Albemarle Corporation (NYSE:ALB) to ‘Sector Weight’, raising the possibility that the rally surpassed fundamentals.

Although both analysts are optimistic about the long-term demand for lithium, there are also short-term dangers, such as pressure on prices, underutilized output, and uncertainty around contract renegotiations. KeyBanc anticipates that the price of lithium carbonate in China will remain relatively stable around $8.50 to $9.50/kg.

As the lithium market rebalances, analysts are closely monitoring it to determine whether Albemarle Corporation (NYSE:ALB)’s progress can continue or whether structural obstacles will become more significant in 2026.

Albemarle Corporation (NYSE:ALB), a global specialty chemicals manufacturer, is one of the biggest producers of lithium, which is utilized in energy storage and electric car batteries. It is included in our list of cheap solid state battery stocks.

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Disclosure: None.