Albermarle stock rallies after 5-year lithium supply deal with Ford

Shares of Albermarle Corp.
ALB,
+1.37%
rallied 1.4% in premarket trading Monday, after the specialty chemicals company announced a 5-year agreement to supply more than 100,000 tons of battery-grade lithium hydroxide to Ford Motor Co.
F,
-0.73%,
that will be used to make about 3 million electric-vehicle (EV) batteries. Albermarle said the 5-year agreement starts in 2026. Financial terms of the agreement were not disclosed. The announcement comes after Ford said it will announce at its capital markets day, which kicks off at 8 a.m. Eastern, new agreements for EV battery raw materials. “With the growing demand for EVs in the United States, our customers are seeking to regionalize their supply chain for greater security, sustainability and lower costs,” said Eric Norris, president of Albemarle Energy Storage. “This agreement exemplifies the industry collaborations and investments required.” Albermarle’s stock has lost 5.9% year to date through Friday, while the S&P 500
SPX,
+0.04%
has gained 9.2%. Separately, EnergySource Materials (ESM) also announced a lithium supply contract with Ford.