Albemarle, which has emerged as a major corporate force in Charlotte with more than 1,000 workers, is cutting back on two major area investments as it trims costs and tries to reverse a slide in its stock price.
The company is best known for its lithium mining used in batteries for electric vehicles and many other products. It is reducing its expected annual capital expenditure budget to $1.6 billion to $1.8 billion, lower than the previous $2.1 billion spent in 2023.
Layoffs are also planned as part of a $95 million annual reduction in costs, which will include an undisclosed number of job cuts. The company has said it employs more than 7,000 people.
The company is set to disclose its 2023 earnings on Feb. 15, when it will provide more details, according to a release.
Albemarle says it will “defer investment” on its technology park project in north Charlotte and a $1.3 billion lithium hydroxide processing plant near Richburg in Chester County, South Carolina. The latter effort was expected to create 300-plus jobs and open in 2026.
The company is focusing on its plan to reopen a long-closed mine near Kings Mountain, which is one of the few places in the U.S. with known hard-rock lithium deposits. The project is benefiting from the Biden Administration’s push for more domestic mining and electric vehicles. The company received a $90 million grant last year from the Department of Defense to help boost production of lithium.
It is also nearing commissioning of several lithium refineries in China and Australia, which are almost completed, according to the Mining.com website.
“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,” Albemarle CEO Kent Masters said in a release.
Indices of lithium prices have declined by more than 80% in the past year as supply of the metal exceeded demand. Experts cite slower-than-expected demand for electric vehicles, which tend to be more costly than gas-powered peers. Lack of accessible charging stations also gets blamed for the declining EV sales.
Separately, Albemarle is seeking to sell its stake in Australia’s Liontown Resources after its $4 billion takeover was blocked by Australian billionaire Gina Rinehart, who didn’t think the offer was rich enough. She bought a nearly 20% stake in Liontown shares, effectively ending the deal.
Shares in Albemarle declined by more than 4% to about $120.50 in late Wednesday trading, near the lowest levels since late 2020. Shares have traded between $112 and $293 in the past year.
The company moved its headquarters and fewer than 100 workers to Charlotte from Baton Rouge, Louisiana, in 2015-16 after it acquired the Kings Mountain site as part of a $5.7 billion acquisition of Rockwood Holdings.
