Albemarle: Starting To See Green Shoots – C-Suite Transitions

• Albemarle Corporation is poised for a recovery, despite a sharp decline in earnings, as lithium prices are expected to rebound.
• Lithium prices have fallen since January—impacted by weaker-than-expected electric vehicle sales and an oversupply from China.
• Albemarle has implemented a restructuring plan aimed at enhancing cost efficiency and adapting to changing market conditions.

• The Energy Storage segment provides lithium compounds and recycling services for lithium by-products.
• The Specialties segment focuses on bromine-based chemicals, lithium specialties, and products for pyrotechnic and pharmaceutical applications.
• The Ketjen segment offers clean fuel technologies, hydroprocessing catalysts, and performance catalyst solutions. Albemarle serves energy storage, petroleum refining, electronics, automotive, pharmaceuticals, and crop protection industries.

One of the primary factors contributing to the recent decline in lithium prices is the slowdown in electric vehicle (EV) sales growth, particularly in China, which accounts for roughly 60% of global EV registrations. According to the International Energy Agency (IEA), new electric car registrations grew by only 35% in 2023, down significantly from the 82% growth in 2022. This deceleration is largely due to the uncertainty around China’s economic recovery and the gradual phase-out of government EV subsidies.

However, the global outlook for the EV market is beginning to improve.

EV Demand Rebounds

Despite the challenges in the Chinese market, recent data shows signs of recovery in global EV demand. Market research firm Rho Motion reported a 30.5% year-on-year increase in global sales of fully electric and plug-in hybrid vehicles in September. China led the surge with a 47.9% jump in sales, setting a new record of 1.12 million vehicles sold in the month. Europe also showed renewed growth, while sales in the U.S. and Canada were slower, rising just 4.3% to 150,000 vehicles.

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