(Reuters) -Albemarle Corp, one of the world’s biggest producers of lithium, raised its full-year forecasts on Wednesday after quarterly profit more than doubled on strong demand for the metal used in electric-vehicle batteries.
Shares of the company jumped 16% in extended trading.
Lithium’s central role in the production of electric-vehicle batteries has made it a coveted commodity as global efforts to decarbonize automobiles gather pace. That has pushed up prices of the metal to record highs in a boost for producers.
Yet demand is expected to outstrip supply, with Tesla Inc Chief Executive Elon Musk saying last month that lithium is “a limiting factor” in the growth of EVs.
Charlotte, North Carolina-based Albemarle posted a net income of $253.4 million, or $2.15 per share, for the first quarter ended March 31, compared with $95.7 million, or 84 cents per share, a year earlier.
The company said it now expects full-year net sales to come between $5.2 billion and $5.6 billion, compared with an earlier forecast of $4.2 billion to $4.5 billion.
It also raised its annual adjusted profit outlook to between $9.25 and $12.25 per share, from $5.65 per share to $6.65 per share.
(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya Soni)
