The strong demand for lithium has created an earnings season opportunity for investors, according to Deutsche Bank. Analyst David Begleiter added what the bank calls a "catalyst call" for Albemarle , a chemical company that is a key player in the lithium industry. Begleiter said in a note to clients that the market underestimates the strength of Albemarle's most recent quarter and its outlook. "Fueled by sharply higher lithium prices and no signs of a slowdown in demand, we believe Albemarle is on track for another beat and raise with its Q2 earnings release on August 3," Begleiter wrote. Lithium is becoming an increasingly vital part of the global economy because of its use in batteries and the shift toward electric vehicles. However, shares of Albemarle are down about 16% year to date. Deutsche Bank said the strong pricing for lithium should show up in the quarterly report. "Our above-consensus Q2 Lithium EBITDA estimates are underpinned by volume growth of 15% and pricing up 177%. Given better-than-expected strength in China spot prices (where it has some limited exposure), we believe Albemarle will modestly raise its '22 lithium price forecast which will drive a modest increase in full-year '22 EBITDA guidance," Begleiter wrote. Deutsche Bank has a price target of $255 per share for Albemarle, which is 30% above where the stock closed on Wednesday. — CNBC's Michael Bloom contributed to this report.