Albemarle Corp., the world’s largest producer of lithium, has announced plans to idle a major lithium processing plant in Western Australia as it struggles with a weak lithium price.
Albemarle said it would idle the last active processing unit, or train, at its Kemerton lithium hydroxide processing plant and place it into care and maintenance effective immediately. The decision follows actions in 2024 to place Train 2 into care and maintenance and to cease expansion plans for Trains 3 and 4.
“Idling operations at Kemerton was a difficult decision. It follows significant actions we have taken over the past two and a half years to reduce operating costs during an extended period of price volatility in the market,” Albemarle CEO Kent Masters said in a news release.
The Kemerton plant processes spodumene from Greenbushes, the world’s biggest hardrock lithium mine.
Kemerton, with its proven technology and commercial-scale lithium hydroxide production, was built to enable the development of a Western lithium supply chain.
Lithium prices have crashed since 2022, driven by oversupply from China and high energy prices.
Albemarle reported a fourth-quarter net loss of US$455.9 million, compared to a net profit of US$33.6 million in the prior-year quarter.
The company said the net loss was primarily due to tax-related items and the write-down of assets in relation to the expected sale of its Ketjen refining catalyst business.
“Unfortunately, recent lithium price improvements alone are not enough to offset the challenges facing Western hard-rock lithium conversion operations,” Masters said.
“This decision improves our financial flexibility and preserves optionality.”
The decision to mothball Kemerton is expected to be accretive to adjusted EBITDA beginning in the second quarter of 2026 with no impact to projected 2026 volumes.
Albemarle’s mining interests in Australia, including its holdings in Greenbushes and Wodgina and its exploration interests in Western Australia, are not impacted by the Kemerton decision as they remain core components of the company’s strategy.