Albemarle Corporation (NYSE: ALB) the world’s top lithium and specialty chemicals producer posted its financial results for Q4 and the full year of 2024. Despite lower lithium prices, the company reduced costs and improved operations to remain competitive.
Strong efficiency measures helped in profitability but adjusted earnings did not meet analyst expectations. Like many other lithium players, Albemarle also faced a lithium supply glut mainly due to overproduction in China.
Kent Masters, chairman and CEO of Albemarle, expressed himself by saying,
“We are taking decisive actions to reduce costs, optimize our conversion network, and increase efficiencies to preserve our long-term competitive position. As we look ahead, we expect dynamic market conditions to persist but remain confident in our ability to deliver value to stakeholders by increasing our financial flexibility, strengthening our core capabilities, and positioning Albemarle for future growth.”
Albemarle Reports Loss and Challenges for Q4
Albemarle ended Q4 2024 with $1.2 billion in revenue and a net income of $75 million, or $0.29 per diluted share. However, the adjusted diluted loss per share was $1.09.
Energy Storage Hit by Lower Lithium Prices
Energy Storage, Albemarle’s largest segment, saw Q4 sales of $617 million, a 63% drop from the previous year. This decline came from a sharp 53% drop in lithium prices. Sales volumes also fell by 10%. Plant outages and the timing of spodumene sales played a role in this situation.
However, adjusted EBITDA rose $290 million to $134 million, supported by lower spodumene costs and the absence of a $604 million charge recorded in Q4 2023.
Specialties and Ketjen Disappoint
Albemarle’s Specialties segment reported sales of $333 million, down 2% from last year. Adjusted EBITDA increased by $43 million to $73 million. This rise came from cost-saving measures and higher market demand. In contrast, the Ketjen business, which makes catalysts, saw a 17% drop in sales to $282 million, mainly due to lower volumes.
Full-Year Performance
For the entire 2024, Albemarle made $5.4 billion in revenue. Energy Storage volumes grew by 26%. However, restructuring costs resulted in a net loss of $1.2 billion, or $11.20 per diluted share.
As the company aimed for efficiency, it achieved $1.1 billion in adjusted EBITDA and generated $702 million in operating cash flow. This success came from strong cost controls and effective working capital management.
2025 Outlook and Strategic Moves
Albemarle is taking proactive steps to manage changes in the lithium market. They are tightening spending and improving efficiency. The energy storage sector relies heavily on lithium prices. Net sales and profits in the sector may be affected when lithium prices fall.
The company adapts to falling lithium prices by cutting spending and boosting efficiency. It has reached over 50% of its $300-400 million cost reduction goal. Additionally, it improved lithium conversion efficiency at La Negra and Meishan. By mid-2025, the Chengdu site will enter care and maintenance. Meanwhile, Qinzhou will shift some production to lithium carbonate.
It also aims for better financial management and cost savings. This will help ensure resilience in a tough market.
Albemarle’s Net Zero Goals: Leading Lithium Innovation for a Sustainable Future
Albemarle’s advanced processing site in Kings Mountain, North Carolina is crucial for lithium development. It uses cutting-edge technology to refine and convert lithium for energy storage. It also has a top-notch research and development center that focuses on improving battery materials.
The company focuses on producing high-quality lithium. This matters because demand is growing for lithium in EVs, renewable energy storage, and digital technology. It’s constantly improving its processes to make energy storage safer and more efficient. This strategy supports the energy transition and emphasizes Albermarle’s commitment to sustainability.
Energy Storage Product Portfolio
Building a Greener Lithium Industry
As a founding member of the International Lithium Association (ILiA), the company sets global standards for carbon footprint measurement. This covers brine, hard rock, and clay sources. Their work promotes responsible resource management and transparency in the lithium supply chain.
By taking the lead in sustainable lithium production, Albemarle is ensuring that the industry grows in an environmentally responsible way, supporting cleaner energy solutions for years to come.
2030 Carbon Neutral Goals:
Albermarle wants to achieve carbon neutrality across its scope emissions by 2030.
The company aimed to collect primary data from suppliers for 75% of its raw material carbon footprint by 2023, increasing to 90% by 2024, to achieve its Scope 3 reduction target.
Sustainability Snapshot
The company’s 2023 sustainability report highlighted the following achievements:
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Energy Storage: In 2023, Albemarle cut Scope 2 emissions by using renewable electricity at La Negra and Xinyu. Equipment upgrades at Xinyu improved efficiency, reducing Scope 1 emissions. Amsterdam secured 50% renewable electricity for 2024-2026.
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Specialties & Ketjen: Lower production kept total emissions on track, but intensity rose as plants operated below capacity. Efficiency optimization remains a priority.
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Bromine Sustainability: Completed ISO-compliant product carbon footprint study for Magnolia, Arkansas, verified by EcovaMed, reinforcing sustainable bromine production efforts.
We hope with a strong strategy in place, Albermarle can rebound and hold its ground in terms of both revenue and sustainability for this year.
