NEW YORK – The price of lithium soared 24.2% in July 2025, positioning the metal as a top-performing commodity amid a confluence of powerful demand and supply pressures. The surge is being driven by anticipated needs from the buildout of new artificial intelligence data centers and a significant production cut by a major producer in China.
The rally has ignited investor interest in major lithium stocks, including Albemarle Corp. (NYSE: ALB), Sociedad Química y Minera de Chile (NYSE: SQM), and Lithium Americas Corp. (NYSE: LAC), which have all seen their valuations climb.
Two primary factors are fueling the price spike. First, the rapid expansion of AI infrastructure across the United States is expected to require substantial amounts of lithium for energy storage and components within high-performance computing systems.
Second, supply chain concerns have intensified after a leading Chinese lithium company, which operates within a country that controls over three-quarters of the global lithium supply chain, announced plans to reduce production volumes pending further government approvals.
This combination of rising demand and tightening supply has had a direct impact on the market, with several key producers experiencing significant stock gains:
-
Albemarle Corp. (ALB): The company has seen increased investor optimism following strong earnings projections. Wall Street analysts are forecasting earnings of $2.74 per share for its upcoming quarter, a substantial jump from its most recent result of 11 cents per share. This follows a previous quarter where the company significantly beat analyst expectations. Reflecting this confidence, institutional investor Geode Capital Management increased its holdings in Albemarle by 2% in early August, bringing its total position to an estimated $184.8 million.
-
Sociedad Química y Minera de Chile (SQM): Shares of the Chilean producer have been a standout performer, rallying approximately 27% in one week to trade at 97% of its 52-week high. The company’s strategic position, operating in Chile—home to the world’s largest lithium reserves—and supplying the U.S. market, is seen as a key advantage. Additionally, a recent 12.2% decline in short interest suggests that bearish bets against the stock are waning.
-
Lithium Americas Corp. (LAC): The company, which owns 100% of the mining rights at the Thacker Pass in Nevada, has seen its stock jump 18.7% over the past week. Its domestic assets are considered critical for creating a more resilient U.S. supply chain. The stock also has significant short interest, with bearish bets accounting for 13% of its public float, leading analysts to note the potential for a “short squeeze” if the price continues to rise.
