Amid changing market conditions in the lithium industry, Albemarle, a Charlotte, N.C.-based lithium miner, has announced its plans to implement cost-saving measures. These measures aim to reduce annual costs by approximately $95 million through the curtailment of sales, general and administrative expenses, including job cuts and reduced spending on contracted services.
Albemarle’s decision to implement these measures comes as a response to changes in the lithium value chain. In addition to reducing costs, the company will also defer investment for its Albemarle Technology Park located in North Carolina. Furthermore, Albemarle will limit sustaining capital spending to focus solely on important health, safety, environmental, and site maintenance projects.
According to Chief Executive Kent Masters, “The actions we are taking allow us to advance near-term growth and preserve future opportunities as we navigate the dynamics of our key end-markets.” As part of these measures, Albemarle plans to reduce capital expenditures, targeting a range of $1.6 billion to $1.8 billion in 2024, down from $2.1 billion in 2023.
This reduction in spending reflects a strategic approach by Albemarle, prioritizing projects that are significantly progressed, near completion, and in startup. The company anticipates that these projects will yield greater value in the near term.
As a result of these cost-saving measures, Albemarle expects to record a charge in the first quarter related to severance and benefit costs, as well as exit activities and asset write-downs.
As Albemarle adapts to the evolving lithium market conditions, the company remains committed to driving near-term growth while simultaneously protecting future opportunities.
