Albemarle, the top lithium producer, surprised with a profitable second quarter due to high demand for the metal, driving shares up. Lithium demand is rising, with a 24% increase last year and expected 12% annual growth. The company’s net sales were $1.33 billion, exceeding analyst expectations, despite a 7% decrease from last year.

Revenue fell due to lower pricing, offset by volume growth in energy storage and specialties. Lithium prices dropped over 90% in two years, leading to job cuts and project cancellations. The company aims to combat oversupply with cost-cutting measures and a revised capital expenditure plan of $650-750 million.

Albemarle plans to generate positive free cash flow by 2025, with an analyst noting potential downward revisions in 2026. Quarterly profit was 11 cents per share, beating expectations of an 82-cent loss. The company is conducting a comprehensive review of its cost and operating structure, set to be completed by October.

Read more at Yahoo Finance: Albemarle posts surprise second-quarter profit on lithium demand; shares surge