Friday, August 22, 2025

Albemarle Unveils Cost-Cutting Measures, Including Job Cuts, Amid Plummeting Lithium Prices

Albemarle (NYSE: ALB) announced a strategic plan on Wednesday to trim expenses as the world faces a surplus in the global supply of lithium. The move includes job cuts, a reduction in capital spending, and a postponement of a major lithium refining project in the United States, all aimed at addressing the impact of falling prices of the essential metal used in electric vehicle (EV) batteries.

As part of its cost-cutting strategy, Albemarle is targeting a capital spending range of $1.6 to $1.8 billion for 2024, down from approximately $2.1 billion in 2023. Additionally, the company is deferring investment in a colossal lithium refining project situated in South Carolina, initially designed to be one of the world’s largest processors of the battery metal.

While implementing these measures, Albemarle emphasized its commitment to completing the commissioning of lithium refineries in China and Australia, both of which are near completion. The company also outlined plans to prioritize permitting efforts for the reopening of a lithium mine in North Carolina.

The oversupply of lithium in the market over the past year has led to a significant drop in prices, particularly affecting the battery sector. Benchmark Mineral Intelligence reported an 81% decline in its price index over the past year and an additional 11% drop in the last month.

The restructuring plan includes workforce reductions, although specific details regarding the number of affected employees were not disclosed by Albemarle. The overall impact of these initiatives is anticipated to yield annual savings of $95 million, with $50 million expected in 2024, according to the company.

Acknowledging the financial implications of the restructuring, Albemarle disclosed that it would record charges in the first quarter related to severance and benefit costs, exit activities, and asset write-downs.

In a parallel development on Wednesday, Albemarle revealed its decision to divest its stake in Australia’s Liontown Resources. This decision follows the blockage of Albemarle’s $4.3 billion bid for the lithium developer by Australia’s wealthiest individual, Gina Rinehart, last year.


Information for this story was found via Mining Weekly and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

A Medical Breakthrough the Market Overlooked | David Elsley – Cardiol Therapeutics

Why Grade Beats Size in Silver Mining | Frank Basa – Nord Precious Metals

Are Investors Missing the Start of the Next Commodity Supercycle? | Morgan Lekstrom – NexMetals

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

He Said $300 Silver!? | Peter Krauth

Peter Kraut from Silver Stock Investor digs into what’s really driving silver’s recent surge, looking...

Tuesday, August 5, 2025, 12:53:00 PM

Silver Shortage Explained: Mining, Demand, and Inflation

At the Rule Symposium of Natural Resource Investing in Boca Raton, Florida, Steve interviewed Shawn...

Monday, July 15, 2024, 01:01:00 PM

Mirasol Resources Intersects 625.0 G/T Silver Over 10.8 Metres At Virginia Silver

Mirasol Resources Ltd. (TSXV: MRZ) announced this morning the drill results from the Virginia Silver...

Monday, May 17, 2021, 09:25:51 AM

Silver Will Hit $50 This Year! – Todd Bubba Horwitz

In this interview, Todd “Bubba” Horowitz discusses his silver market outlook and potential for significant...

Sunday, June 29, 2025, 11:29:00 AM

Aya Gold & Silver Reports 389,132 Silver Ounces Produced In Q1

Aya Gold & Silver (TSX: AYA) this morning reported its first quarter production results for...

Monday, April 26, 2021, 09:01:19 AM