1) Strong Financial Performance
- Q2 2026 net sales reached $1.7 billion, a 31% YoY increase, driven by higher pricing in energy storage (up 73%) and improved pricing and volumes in specialties.
- Adjusted EBITDA more than doubled to $858 million, with an EBITDA margin of 49%.
- Cash from operations was $710 million, translating to over 80% operating cash conversion and $638 million in free cash flow.
- The company is on track to achieve the high end of its $100 million to $150 million target for cost and productivity improvements.

2) Market Dynamics and Segment Growth
- Global lithium consumption surged 45% YoY through May, driven by strong demand in stationary storage and electric vehicles.
- The energy storage segment's adjusted EBITDA increased 229%, while specialties saw a 61% increase.
- Specialty segment net sales were $424 million, up 20% YoY, with adjusted EBITDA margins expanding to 28%.
- The company raised its 2026 specialty sales and EBITDA outlook due to strong performance and proactive cost management.

3) Supply Chain Challenges and Headwinds
- Supply increases are lagging behind demand growth due to limited spodumene availability and disruptions in shipments from Africa.
- The ongoing situation in the Middle East is estimated to impact results by $70 million to $90 million for the full year.
- The fire at the CGP3 plant in June has temporarily affected energy storage sales volumes, although the plant has restarted.

4) Operational and Product Development Plans
- Albemarle is advancing direct lithium extraction (DLE) at the Salar de Atacama, leveraging its brine processing expertise.
- The company is focused on improving operational efficiency, with ongoing projects at La Negra, JBC, and lithium conversion sites in China.
- Wodgina operations are outperforming expectations, helping to offset the impact of the CGP3 fire.
- The company is also evaluating additional growth projects, including brownfield opportunities and further investments in the Salar de Atacama.

5) Guidance and Outlook
- Albemarle expects to maintain its total company outlook ranges, likely coming in at the high end due to strong year-to-date performance.
- Energy storage sales volumes are projected to be flat to down 4% YoY due to the CGP3 fire, while specialty sales are expected to increase.
- The company remains focused on disciplined capital allocation and operational excellence to navigate through market volatility.

Bottom line: Albemarle's strong Q2 performance, driven by robust demand in energy storage and specialty segments, positions the company well for continued growth despite supply chain challenges. The focus on operational efficiency and strategic investments in DLE technology supports a positive long-term outlook for shareholders.