As previously reported, Morgan Stanley analyst Vincent Andrews downgraded Albemarle (ALB) to Underweight, the firm's sell-equivalent rating, from Equal Weight citing his concerns on both the lithium supply and demand side.

On the lithium demand side, bulls' electric vehicle penetration rate forecasts seem "aggressive, said Andrews. He also now has material concerns on the supply side following the recent Chilean government agreement with SQM (SQM), added Andrews, who lowered his price target on Albermarle to $85 from $100.

Morgan Stanley analyst Javier Martinez de Olcoz Cerdan also downgraded SQM to Underweight this morning.