From CNBC: 2024-07-31 17:21:58

Lithium mining giant Albemarle will halt the expansion of a manufacturing plant in Australia due to weak lithium prices. The company will reduce the workforce at the Kemerton plant by 40% and idle a processing line, cutting production capacity from 50,000 tons to 25,000 tons. Albemarle reported a second-quarter net loss of $188 million and sales fell 39%.

CEO Kent Masters stated that lithium prices are expected to remain low for a while, prompting cost-saving measures. Prices have dropped to under $12,000 per metric ton, and demand in Europe is flat with poor performance in the U.S. Berenberg downgraded Albemarle to hold and slashed its price target by nearly half to $83 per share due to the challenging market conditions.

Despite the difficult market environment, Albemarle insists it will not seek additional equity capital. The company plans to focus on cost-saving measures and expects capital expenditures to align with its guidance for 2024. Wall Street analysts have mixed opinions on the stock, with 54% rating it as hold, 39% as buy, and 7% as sell. Albemarle shares have declined by nearly 36% since the beginning of the year.



Read more at CNBC:: Lithium giant Albemarle halts Australia plant expansion, reviews costs on weak lithium prices