Albemarle Lithium Miner 2025: Cost Cuts and Layoffs Amid Falling EV Demand and Lithium Prices
In 2025, Albemarle, a leading lithium producer, announces significant cost reductions and workforce layoffs as declining electric vehicle demand and dropping lithium prices impact revenue and profitability.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams in delivering impactful news coverage on major global events.
Highlights
- Albemarle initiates cost-cutting measures and workforce reductions due to weakening EV market demand and falling lithium prices affecting sales and earnings.
- The company plans to reduce capital expenditures for 2024 and streamline its operational costs.
- These adjustments reflect Albemarle's response to evolving market conditions in the lithium industry.
Shares of Albemarle (ALB) declined on Wednesday after the top lithium supplier revealed plans to reduce expenses and jobs to adapt to shifting market dynamics and preserve financial stability.
The downturn in electric vehicle adoption and a sharp decrease in lithium prices have pressured Albemarle's financial performance.
For 2024, Albemarle aims to lower capital spending to between $1.6 billion and $1.8 billion, a decrease from $2.1 billion in 2023. This adjustment prioritizes projects nearing completion or startup phases.
Additionally, the company targets $95 million in annual cost savings by optimizing its cost structure, focusing on reductions in sales, general, and administrative expenses, including employee layoffs and lower contracted service costs.
CEO Kent Masters stated that these strategic moves will support near-term growth while safeguarding future opportunities amid the volatile market environment.
The exact number of job cuts was not disclosed. Albemarle expects to record charges this quarter related to severance, benefits, asset disposals, and write-downs.
In November, Albemarle revised downward its full-year sales and profit forecasts due to persistent lithium price declines.
As of late Wednesday morning, Albemarle's stock traded at $123.96, down 1.6%, reflecting a nearly 50% drop in value over the past year.
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