“We built on the momentum we established in the second half of 2021, driving execution and delivering a strong start to the year,” Kent Masters, chief executive, said in a statement. “A lot of the end markets we serve are critical in making the transition to greener energy and facilitating electrification and digitalization.”

In its forecast, the specialty chemicals maker said it now expects combined sales to fall within a range of $5.2 billion to $5.6 billion in 2022, up from its earlier projection of $4.2 billion to $4.5 billion given in February. The guidance includes revenues from its lithium, bromine, and catalyst business segments. The company recorded $3.3 billion in sales for 2021.

In Q1 2022, nearly half of Albemarle's $1.13 billion in sales came from lithium, which totaled $550.3 million. Lithium sales increased 36% year over year, while total sales jumped 97% over the same period.

The surge in lithium sales was attributed to sharply rising prices and the favorable impact of renegotiated variable price contracts with customers.

S&P Global Commodity Insights priced seaborne lithium hydroxide at $80,000/mt CIF North Asia on April 29, up from $31,700/mt at the start of 2022 and $9,000/mt at the beginning of 2021.

Lithium carbonate was priced at $75,000/mt on the same date, rising from $33,800/mt at the beginning of 2022 and $6,350/mt at the start of 2021.

Masters said Albemarle is actively assessing investments to take advantage of strong market growth and pricing momentum.

“We are actively evaluating sustainable solutions to grow our conversion capacity and capabilities, including through opportunities in North America and Europe,” he added.

The company reported a net income of $253.4 million for Q1 2022, compared to $95.7 million for the same period in 2021.