Zacks identifies two Basic Materials stocks with positive Earnings Surprise Prediction (ESP) metrics that could beat quarterly earnings expectations. Air Products and Chemicals (APD) holds a #2 Buy rating with a +0.79% ESP ahead of its November 5, 2026 earnings release. SQM carries a #3 Hold rating with a +16.15% ESP before reporting on November 17, 2026. Both stocks show potential for positive earnings surprises based on recent analyst revisions.

Albemarle Corporation paid down $1.3 billion in debt in March 2026, reducing annual interest expenses by $60 million. The company ended Q2 with $1.88 billion in long-term debt and a net debt-to-EBITDA ratio of 0.5x, with $3.2 billion in liquidity and no major debt maturities until late 2028. The deleveraging efforts are expected to improve financial flexibility and reduce interest costs to $120-$140 million for 2026.

RWC Asset Advisors completely liquidated its Li Auto position, selling 1,638,544 shares worth approximately $33 million in Q4 2025. The exit represents a full abandonment of a holding that comprised 6.8% of the fund's assets. Li Auto shares have declined 38% over the past year amid weak earnings, declining revenue, and challenges in the Chinese EV market.

Motley Fool contributors analyze the lithium industry's recovery prospects, examining both bullish and bearish cases for major lithium producers. While long-term demand fundamentals appear strong, the sector faces challenges from volatile pricing cycles that could create bumpy near-term performance for investors.

China's revocation of 27 expired lithium mining permits caused a 7.6% rise in Chinese lithium prices, positively impacting global lithium mining stocks, particularly Sociedad Quimica Y Minera de Chile (SQM).

Global lithium producers experienced significant stock declines after CATL announced an early restart of its Yichun mine, adding fresh supply pressure to an already struggling lithium market. Despite market challenges, strategic deals continue in the sector.

SQM reported Q2 2025 net income of $88.4 million, down 58.6% from last year, amid lower lithium market prices. The company expects increased sales volumes and completed its Kwinana refinery in Australia, targeting battery-grade lithium hydroxide production.

A Chinese lithium company's production halt is expected to create opportunities in the lithium market, particularly for companies positioned to benefit from increased demand driven by data center AI infrastructure and domestic lithium production.

China's CATL halted operations at a major lithium mine in Jiangxi province due to license expiration, causing a significant surge in lithium market prices and boosting lithium-related stocks globally.

SQM, the world's second-largest lithium producer, reported a steep drop in Q4 2024 profit due to declining lithium prices. The company plans to reduce capital expenditures in 2025 as it expects lower average realized lithium prices compared to 2024.

The global water-soluble fertilizers market is expected to grow from $18.3 billion in 2023 to $25.1 billion by 2028, driven by the increasing adoption of precision farming and sustainable agriculture practices. Europe is leading the market, with the agriculture sector undergoing significant technological advancements.

JPMorgan forecasts lithium prices will remain range-bound for the next three years, which could negatively impact lithium stocks like SQM, Piedmont Lithium, and Standard Lithium.