Saturday, May 31, 2025

Latest

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.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Kootenay Silver Hits 43 G/T Silver Over 30.85 Metres At Columba Project

Kootenay Silver (TSXV: KTN) this morning released results from its ongoing drill program at its...

Monday, October 5, 2020, 08:26:26 AM

Max Resource’s AM South Zone Assays 5.6% Copper Via Panel Sample At Cesar Project

This morning, Max Resource Corp (TSXV: MXR) announced the first set of assays from its...

Tuesday, July 14, 2020, 08:45:19 AM

Is There A Silver Supply Shortage? – The Daily Dive

Today on the Daily Dive, our host Cassandra Leah sits down with David Morgan, a...

Thursday, July 29, 2021, 01:30:00 PM

Vizsla Intersects 2,758 G/T Silver Equivalent Over 4.46 Metres At Napoleon

Vizsla Silver (TSXV: VZLA) this morning released released from its ongoing drill program at its...

Wednesday, April 14, 2021, 07:27:19 AM

Mako Completes Second Full Bench At San Albino, Yielding 1,532 Gold Ounces, 2,569 Silver Ounces

Mako Mining (TSXV: MKO) this morning announced the completion of the second full bench at...

Tuesday, November 10, 2020, 07:58:39 AM