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.
