Albemarle loses more than $1 billion on falling lithium prices
Albemarle, the world’s largest lithium producer, said on Thursday it lost more than $1 billion in the third quarter and that it would slash its capital budget amid a 71% drop in prices for the electric vehicle battery metal.
The results underscore the supply glut engulfing the entire lithium industry amid oversupply from China and a softening of aggressive EV adoption rates that has dragged down prices for the ultralight metal.
Charlotte, North Carolina-based Albemarle is making business decisions on the assumption that lithium prices stay in their current range of roughly $12 to $15 per kilogram for the foreseeable future, CEO Kent Masters told Reuters.
“We do think the price is going to be lower for longer,” Masters said. “We’re positioning the company to compete at that level.”
The company last month announced its second reorganization in as many years, describing the move to shrink its business units as necessary to “adapt to dynamic market conditions.”
The moves – including cutting at least 6% of its staff – are expected to save at least $300 million to $400 million each year moving forward.
The company also cut its 2025 capital budget in half from this year’s levels to a range of $800 million to $900 million.
Masters said the trimmed budget would be used to maintain facilities that operate “at the lower end of the cost curve,” although he declined to name specific sites.
Article