Albemarle Corp (NYSE: ALB) shares are rallying more than 6% to $126.21 in Thursday trade, driven by better-than-expected second-quarter earnings and a bullish outlook on lithium demand.

The company reported net sales of $1.74 billion, a 31% year-over-year increase, surpassing the consensus estimate of $1.62 billion. Adjusted earnings per share came in at $3.75, compared to $0.11 in the same period last year, well above the $3.22 forecast. Adjusted EBITDA reached $858 million, up from $337 million a year earlier, versus the expected $779 million.

Albemarle has lowered its full-year capital expenditure guidance to approximately $500 million. The CEO noted that the company has raised its 2026 battery-grade lithium production forecast by 11%, citing global lithium inventories at low levels. The update highlights that sluggish supply has failed to keep pace with the accelerating demand from electric vehicles and battery energy storage systems. Consequently, Albemarle has lifted the lower end of its 2030 global lithium demand forecast by 100,000 metric tons.