Why is Albemarle idling its Kemerton processing plant?

Albemarle is idling its Kemerton processing plant in Western Australia due to weak lithium prices, which have fallen significantly over the past two years.

What was Albemarle's financial performance in the recent quarter?

Albemarle reported a quarterly net loss of $455.9 million, which was larger than expected by analysts.

How have lithium prices performed recently?

Lithium prices have plunged more than 90% over the past two years, although they have climbed somewhat in recent months, they remain far below their previous highs.

Home / Business and Economy / Albemarle Halts Australian Lithium Plant Amid Price Plunge

Albemarle Halts Australian Lithium Plant Amid Price Plunge

12 Feb

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Summary

Albemarle idles Kemerton plant in Australia due to weak lithium prices.
Company reported a larger-than-expected quarterly loss of $455.9 million.
Lithium prices have fallen over 90% in the past two years.

Albemarle Halts Australian Lithium Plant Amid Price Plunge

Albemarle, a leading global lithium producer, has decided to idle a major processing plant located in Kemerton, Western Australia. This decision comes in response to a sharp decline in lithium prices, which have fallen more than 90% over the past two years. The company's financial results reflect these challenges, with Albemarle reporting a quarterly net loss of $455.9 million, exceeding analyst expectations.

The Kemerton plant processed spodumene from the Greenbushes mine. Albemarle has now idled the last active processing unit at Kemerton, having previously closed another unit last year and canceled plans for expansion. CEO Kent Masters stated that recent price improvements are insufficient to sustain these operations. Despite the operational challenges, Albemarle reported a 23% increase in lithium product sales during the quarter.

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