The company has launched a review of its operating and cost structure which will see it take immediate asset actions at the Kemerton lithium hydroxide conversion site in Western Australia.
The company said it is taking these steps to proactively respond to ongoing industry headwinds, particularly in the lithium value chain, and preserve long-term competitiveness.
As part of the initial review to optimise its network, Albemarle announced changes to the operating footprint at its Kemerton site, including:
- Stopping construction activities at Train 3
- Idling production at Train 2 and placing the unit in care and maintenance
- Focusing manufacturing efforts on the continued ramp and qualification of Train 1
Albemarle’s said its actions regarding Kemerton are part of a broader effort that will focus on the following key areas:
- Preserving Albemarle’s world-class resource advantages
- Optimising its global conversion network
- Improving the company’s cost competitiveness and efficiency
- Reducing capital intensity
- Enhancing Albemarle’s financial flexibility
Albemarle Chairman and CEO, Kent Masters, said, “The long-term growth potential for our end markets remains strong, and we plan to leverage our core capabilities while ensuring we remain competitive.
“Given the dynamics of the global markets we serve, we must be able to pivot and pace as necessary to maintain our leading position.”
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