Sigma Lithium (SGML) shares closed 32% higher on Nov. 17 after Li Liangbin, the chairman of Ganfeng Lithium Group, forecast a 30%-40% increase in global lithium (LMZ25) demand for 2026.
Liangbin’s projection suggests lithium carbonate prices could climb to as much as 200,000 yuan a ton next year, more than double its price at the time of writing.
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Despite today’s rally, SGML stock remains down roughly 40% versus its year-to-date high.
Ganfeng isn’t the only vertically integrated lithium company that’s forecasting a massive increase in the metal’s demand.
Albemarle’s (ALB) chief executive has also recently projected a more-than-2.5-times increase in lithium’s demand for stationary application through the end of this decade.
That’s because lithium demand is no longer restricted to electric vehicle (EV) applications only. Artificial intelligence (AI) and data centers have created substantial new requirements for lithium-based energy storage systems.
The demand for stationary storage in North America is up nearly 150% this year, primarily driven by AI-powered data center expansion requiring enhanced grid stability solutions.
This evolving market dynamic could help Sigma Lithium stock reclaim some of its lost ground in 2026.
Sigma Lithium shares are particularly well-positioned to capitalize on renewed sector optimism as the company’s recent earnings report suggests its balance sheet is stronger than investors had feared.
SGML has resumed production at its flagship “Grota do Cirilo” project in Brazil, with the mine expected to ramp up to normal levels in the coming weeks.
Additionally, the mining firm is on the cusp of profitability, with full-year profits expected as early as 2026, according to BMO analysts. The profitability milestone could drive SMGL shares higher as well.
In short, the rising demand could prove transformative for Sigma since higher lithium prices would provide meaningful operational leverage given the company’s relatively fixed cost structure.
Wall Street analysts also recommend sticking with Sigma Lithium stock heading into 2026.
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