(Reuters) – Livent (NYSE) Corp posted a quarterly profit Tuesday and increased its revenue projection for 2022 due to higher lithium demand in electric-vehicle battery batteries.

From its earlier forecast of $540million to $600million, the Philadelphia-based company now anticipates that annual revenue will be $755 million to 835 million.

The record-breaking lithium price has been reached because of increased demand. This is despite global efforts for decarbonization in automobiles.

Elon Musk, Tesla Inc (NASDAQ:) Inc chief executive, stated that lithium was “a limiting factor in the growth” of EVs earlier this month. He encouraged other companies to get into the lithium market to benefit from higher prices.

Livent made a net profit for its first quarter at $53.2 million or 28 cents per diluted share. It was a significant improvement on the loss of $800,000.

Paul Graves, CEO of Livent, stated that strong lithium demand has continued through 2022. He also added that Livent realized higher prices for its whole product range.

The company’s earnings were 21 cents per share, exempting other expenses.

Revenues rose by 56% to $143.5 Million