Depressed lithium prices have caused Bank of America to downgrade US producer Albemarle to Underperform.
The bank also cut its earnings forecast for Albemarle and lowered its price target to $195 from $262.
Shares of the global chemical manufacturer were down 1.3% on Thursday morning to trade around US$194.
Bank of America analysts noted that Albemarle could face a headwind of more than $800 million to EBITDA if lithium carbonate prices remain near $30,000.
Albemarle is one of the world's largest producers of lithium, a key component used in rechargeable batteries for electric vehicles, consumer electronics, and energy storage systems.
The company operates lithium production facilities in several locations worldwide, including the United States, Chile, and Australia. Albemarle is also involved in other businesses such as producing bromine, catalysts, and other specialty chemicals.
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