Deutsche Bank sees a lithium market turnaround and upgraded three major producers.Albemarle, SQM, and Lithium Argentina moved to Buy ratings as energy storage demand absorbs surplus supply. Deutsche Bank lifted its 2026 lithium price forecast by 37% to $15.40 per kilogram, citing stronger battery demand that is offsetting softening electric vehicle sales growth. This price outlook improves cash flow visibility for large, diversified miners.

For Albemarle, higher spot and contract prices reduce near-term downside despite ongoing policy risks around solar-linked demand. SQM received a double boost: improved pricing and reduced uncertainty around its Codelco joint venture in Chile. The brokerage assumes the partnership can deliver additional output, supporting margins.

SQM still trades at a discount to Albemarle, which DB views as historically normal. Lithium Argentina earned its upgrade on steady volume growth and cost control at the Cauchari-Olaroz project, which started production last year. The broker’s valuation models assume a multi-year ramp and extend cash flows into the next decade, while pricing in Argentina’s jurisdiction risk.

Globally, supply discipline and project delays are tightening conditions. Lithium prices crashed from 2022 peaks as new supply came online, but battery makers are now pulling material for grid storage projects at a faster pace than expected. Deutsche Bank’s call suggests the sector may be entering a more balanced phase.