Kitco News – Albemarle (NYSE: ALB) said today it is laying off staff and in 2024 will only spend $1.6 billion to $1.8 billion in capital expenditures, down from approximately $2.1 billion in 2023.
The entire lithium sector has been under pressure due to falling lithium prices. Reuters reported that lithium prices could drop another 30% in 2024 on top of the steep price tumbles last year. Albermarle, one of the world’s top lithium producers, is down 49% from a year ago.
The company plans to reduce costs by approximately $95 million annually, primarily related to sales, general, and administrative expenses, “…including a reduction in headcount and lower spending on contracted services.”
The company said it is optimizing its cost structure in response to changing end-market conditions.
“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,” said Albemarle CEO, Kent Masters.
The lithium producer is headquartered in Charlotte, NC, and has about 7,000 staff.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Read the full article here