Lithium net sales of $279 million increased $42.2 million or 17.8% from a year earlier, primarily driven by higher volumes, as some customers accelerated orders under long-term agreements, offset by lower average pricing for carbonate and technical grade, Albemarle said.

However the company's net income was $95.7 million, down from $107.2 million in the previous corresponding period.

"As we look to expand our earnings potential, we continue to focus on execution of our growth strategy and are in the final stages of two lithium projects which will double our conversion capacity to approximately 175,000 metric tons," CEO Kent Masters said.

"Additionally, we expect to start approving Wave 3 expansion projects during the second quarter."

The North Carolina-based company had tipped growing lithium demand earlier this year and closed a $1.5 billion placement to accelerate profitable growth.

It said 2021 lithium volumes were expected to be higher year-over-year due to North American plant restarts, productivity improvements and tolling.

"Average realised pricing is expected to increase sequentially but remain flat compared to 2020," the company said.

"We expect higher costs related to project start-ups, partially offset by productivity improvements."

Albemarle expected its full year 2021 operating performance to "improve modestly" on 2020, assuming continued recovery from the global economic downturn.

It kept full-year net sales guidance at $3.2-$3.3 billion, full-year adjusted EBITDA at $810-$860 million and capex at $850-$950 million.

The company ended the quarter with liquidity of about $2.2 billion, including $569.9 million in cash and equivalents.

It has declared a quarterly dividend of 39c per share.

Albemarle shares closed 3.1% higher yesterday, at the upper end of a one-year range, valuing it at $19.5 billion.