Albemarle Pauses Kemerton Lithium Hydroxide Trains Awaiting Market Improvement

Published: Aug 9, 2024 16:50

Source: SMM

Save

[Lithium Weekly Update] Albemarle reported Q2 sales volumes of 53,000 tons of LCE, achieving net sales of US$830 million with a decrease from US$933 million in the previous quarter.

On 1 August, Albemarle announced Q2 2024 earnings and cost review strategy to adapt to the current challenging situation in the industry. Albemarle reported Q2 sales volumes of 53,000 tons of LCE, achieving net sales of US$830 million with a decrease from US$933 million in the previous quarter.

Regarding the realized price of lithium chemicals, Albemarle said approximately two-thirds of the 2024 estimated volumes are sold under index-referenced, variable-priced contracts typically including a three-month lag. The margins in its lithium chemicals sector are anticipated to reach their lowest point in Q3 but should improve in Q4 as the lower cost of spodumene offsets new facility ramp costs.

The company is initiating a comprehensive review of its cost and operating structure, which includes placing Kemerton Train 2 into care and maintenance and halting construction on Train 3, which consequently leads to a 300-headcount cut in Kemerton. The management says the shift towards carbonate-based batteries, particularly for LFP technology, has been a factor in the Kemerton decision. Now the company will focus on Train 1 for better optimization, ensuring more efficient ramp-up and operation before considering Train 2. According to previous disclosure, each Train in Kemerton can produce approximately 25,000 tons of lithium hydroxide per year.

There are external concerns about whether Albemarle needs new financing instruments, especially given the current challenging market environment. Albemarle's management asserted that the company could weather the downturn using its balance sheet.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn

Market review New Energy Lithium Prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

[SMM New Energy] Fulin Precision Subsidiary Injects 1B Yuan for Ordos LFP Project Expansion

Fulin Precision has announced a major capital injection of 1.004 billion yuan into its project company, Inner Mongolia Fulin Era New Energy Material, to accelerate the development of its lithium iron phosphate (LFP) facilities in Ordos. The investment was led by the subsidiary Jiangxi Shenghua (779 million yuan), alongside Qianyuan Huizhi and Jiebao Investment. Consequently, Fulin Era's registered capital has surged from 1 million to over 1.005 billion yuan.

1 hour ago

[SMM New Energy] Jiujiang Tinci's 500kt Electrolyte Project Approved, Including 50kt Sodium-ion Capacity

Jiujiang Tinci High-Tech Materials has received regulatory approval for its 500,000-ton/year electrolyte project. With a total investment of 542 million yuan, the facility will be located in the Jiujiang Hukou High-Tech Industrial Park, Jiangxi. The project features a dual-track production layout: 450,000 tons/year for lithium-ion batteries and 50,000 tons/year for sodium-ion batteries. Construction is scheduled to commence in March 2026 and reach completion by December 2026, signaling a significant scale-up in the sodium-ion battery supply chain.

1 hour ago

[SMM New Energy] Zangge Mining: Chaerhan Lithium Capacity to Reach 16kt/a, Mamicuo 50kt Project Set for Q3 Production

Zangge Mining has released its 2026 operational targets, highlighting significant expansions in lithium carbonate production. The company is advancing a 6,000-ton/year expansion at the Chaerhan Salt Lake, which will bring its total capacity there to 16,000 tons/year. Meanwhile, the highly anticipated Mamicuo Salt Lake project (Phase I: 50,000 tons/year) is scheduled to commence production in Q3 2026. Additionally, the Mamicuo Mining entity, in which Zangge holds a 26.95% indirect stake, plans to produce 20,000 to 25,000 tons of lithium carbonate in 2026, bolstering the company's equity resource portfolio.

1 hour ago