(Reuters) -Albemarle, the world’s largest producer of lithium for rechargeable batteries, posted a surprise second-quarter profit on Wednesday, helped by rising demand for the metal.
Shares of the company rose 5.6% after the bell.
Lithium’s use in electric vehicles, large-scale battery storage and other electronic applications has grown rapidly, with demand up 24% last year and likely to grow 12% annually for the next decade, according to data from consultancy Fastmarkets.
However, prices have fallen more than 90% in the past two years due in part to oversupply in China, fueling layoffs, corporate buyouts and project delays across the globe.
The Charlotte, North Carolina-based company reported an adjusted profit of 11 cents per share, compared with analysts’ expectations of 82 cents loss per share, according to data compiled by LSEG.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Alan Barona)
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