Rising lithium prices can't hide the industry's cold winter Yabao(ALB.US) reported quarterly losses exceeding expectations and shut down key Australian production lines

K-LinePoet · 2026-02-23T03:31:33+00:00

The world's largest lithium producer, Albemarle Corporation, announced its quarterly financial report, with a net loss of $455.9 million. The company will shut down its Australian processing plant due to weak lithium metal prices. Although revenue increased by 16.3% year-over-year, the sharp decline in lithium prices had a significant impact. While sales volume increased by 23%, it still couldn't turn the situation around.

K-LinePoet

2026-02-23 03:31:33

Abstract generation in progress

Albemarle Corporation (ALB.US), the world’s largest lithium producer, reported a quarterly loss that exceeded expectations on Wednesday and announced the shutdown of a major processing plant in Australia due to continued weakness in battery metal prices. The earnings report showed that Albemarle’s revenue for the fourth quarter reached $1.43 billion, up 16.3% year-over-year, surpassing expectations by $80 million; net loss was $455.9 million, or a loss of $3.87 per share, compared to a net profit of $33.6 million, or $0.29 per share, in the same period last year.

Over the past two years, lithium prices have plummeted by over 90%, partly due to oversupply from China, leading to layoffs, acquisitions, and project delays among Albemarle and its peers. Although prices have rebounded somewhat in recent months, they remain well below the record highs of 2023.

Albemarle stated that after shutting down one production line at its Kemerton plant in Western Australia last year, it has idled the last active processing line at the facility. The company also canceled plans to add two new production lines.

CEO Kent Masters said in a statement, “Unfortunately, the recent rise in lithium prices is not enough to offset the challenges faced by Western Australia’s hard rock lithium conversion business.”

The Kemerton plant processes spodumene from the Greenbushes mine, which is the world’s largest lithium mine, jointly owned by Albemarle and China’s Tianqi Lithium (002466).

Excluding one-time items (such as costs related to its upcoming sale of the Ketjen refining catalyst business), Albemarle reported a loss of 53 cents per share, compared to analysts’ expectations of a 41-cent loss per share.

Despite the ongoing weak prices, Albemarle reported a 23% increase in lithium product sales.

The company expects revenue of $6 billion for fiscal year 2026 and an adjusted earnings per share of $2.61.

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