Albemarle sales totalled $1.4 billion in the June quarter thanks to a 37 per cent boost in energy storage capacity.
The company’s adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter increased to $386 million.
The boost was driven by higher equity income from increased Talison joint venture sales volumes relating to the Greenbushes lithium mine in Western Australia. Talison is owned by Albemarle, Tianqi Lithium and IGO.
“Our operational mindset continued to serve us well in the second quarter as Albemarle progressed important organic growth initiatives while taking actions to maintain our long-term competitive position,” Albemarle chair and chief executive officer Kent Masters said.
“We achieved the first commercial sales of product from our Meishan conversion plant and delivered more than $150 million in productivity benefits.
“We are also maintaining our full-year 2024 corporate outlook considerations.”
Though Albemarle had its share on wins over the quarter, the company experienced a $188 million net loss due to softened lithium prices.
This has formed part of its decision to reassess the expansion plans it had for the Kemerton lithium hydroxide processing facility in WA.
“Building on the progress already underway, we are announcing a comprehensive review of our cost and operating structure, beginning with immediate footprint actions at our Kemerton site in Australia,” Masters said.
“The review and steps underway will maintain Albemarle’s competitive position and ensure we execute with agility today and in the future.”
In the short term, Albemarle has announced it will stop construction activities at Train 3, idle production at Train 2 and place the unit in care and maintenance while it focuses its manufacturing efforts on the continued ramp and qualification of Train 1.
“The long-term growth potential for our end markets remains strong, and we plan to leverage our core capabilities while ensuring we remain competitive,” Masters said.
“Given the dynamics of the global markets we serve, we must be able to pivot and pace as necessary to maintain our leading position.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
