Albemarle eyes 200,000 mt global lithium capacity by year-end

Albemarle's global lithium conversion capacity is expected to reach 200,000 mt/year by the end of the year, up from its current 85,000 mt/year volume, with the startup or acquisition of three different assets, CEO Jerry Kent Masters said Aug. 4.

"We expect to achieve significant growth milestones this year, thanks to strong end market demand as well as actions that we've taken to invest in profitable growth for lithium," Masters said during an earnings call with industry analysts. "Those investments are now paying off as we ramp up volumetric growth."

By the end of the year, the Charlotte, North Carolina-based company plans to expand lithium capacity at its La Negra operations in Chile to over 80,000 mt/year from the current 44,000 mt/year, start 50,000 mt/year of initial capacity at its joint-venture Kemerton project in Australia and complete its acquisition of a 25,000 mt/year conversion plant in China from Guangxi Tianyuan New Energy Materials.

Master said Albemarle hopes to reach global lithium conversion capacity of up to 500,000 mt/year by 2030 through further projects across multiple continents. This could include an expansion of the company's lithium footprint into Europe, where it does not currently have conversion operations, he added.

Along with capacity growth, Albemarle's lithium sales volumes are expected to rise between 20%-30% this year and projected to further increase by about 20% each year until 2025, according to CFO Scott Tozier.

"We remain committed to strategically grow our lithium and bromine capacity in a disciplined manner," Tozier said. "Capacity growth will also be supported inorganically by continuously assessing our portfolio and pursuing bolt-on acquisitions at attractive returns to strengthen our top-tier resource base."

Tozier said any potential downturn in the lithium market could also allow Albemarle "to take advantage of lower priced acquisitions."

The specialty chemicals producer reported an income of $406.8 million on sales of $1.48 billion in the second quarter, compared with a $424.6 million income on sales of $773.9 million in Q2 2021.

No new details on US expansion

Masters said there was little new information to provide regarding Albemarle's plans to develop a 100,000 mt/year lithium hydroxide conversion facility in the southeastern US, which the company announced in June.

"It's really pre-feasibility, so timing-wise, it's going to be later in the decade when that would come online," he said. "It needs to have a feedstock with the mine, and that's probably the long pole in the tent."

The US facility could possibly convert spodumene from Albemarle's Kings Mountain mine in North Carolina and process recycled battery scrap to produce lithium hydroxide.