Albemarle reduces lithium hydroxide processing

Albemarle is to idle the remaining operating train, Train 1, at its Kemerton lithium hydroxide processing plant in Western Australia and place it into care and maintenance effective immediately. The plant processes spodumene from the Greenbushes mine, in which Albemarle holds ownership interest and half of the offtake rights. 

CEO Kent Masters said that the firm had taken “significant actions” over the past two and a half years to reduce operating costs during an extended period of price volatility in the market. It put Train 2 into care and maintenance in 20204 and cancelled expansion plans for Trains 3 and 4. 

“Unfortunately, recent lithium price improvements alone are not enough to offset the challenges facing Western hard-rock lithium conversion operations. This decision improves our financial flexibility and preserves optionality,” he added.

Albemarle will meet demand for lithium hydroxide through other production channels. Its mining interests in Australia, including holdings in Greenbushes and Wodgina and its exploration interests in Western Australia, are not impacted by this and they remain core parts of the company’s strategy.

In Q4 2025, Albemarle separately announced, net sales were up 16% at $1.4 billion, up 16%, while volumes were up 12%, including gains in all segments. The company took a met loss of $414 million, including tax-related items and the write-down of assets in relation to the expected value of the ongoing Ketjen transaction.