High lithium producer Albemarle (NYSE:ALB) noticed its lithium gross sales enhance 317.9 % year-on-year within the third quarter of the yr on the again of agency demand and better lithium costs.
Lithium internet gross sales reached US$1.5 billion, a rise of US$1.1 billion in comparison with the identical interval final yr, as the corporate renegotiated contracts and costs for the battery metallic stayed at excessive ranges.
“We had an excellent quarter pushed by robust demand for lithium-ion batteries,” Albemarle CEO Kent Masters stated. “With our acquisition of the Qinzhou lithium conversion plant in China and mechanical completion of our Kemerton II growth in Australia, we’re on observe to greater than double our lithium conversion capability in comparison with final yr.”
Trying forward, Albemarle’s lithium outlook stays robust. The corporate expects to greater than double its internet gross sales in comparison with 2021, and it’s calling for its adjusted EBITDA to be practically 4 instances the quantity seen final yr.
Albemarle is anticipating common realized pricing to be up 225 to 250 % year-over-year as a result of renegotiated contracts and elevated market pricing. Adjusted earnings from its lithium enterprise are anticipated to leap 500 to 550 %.
“Ongoing energy in lithium pricing and finish markets offsets barely decrease expectations because of bromine-related weak point in key finish markets, together with client and industrial electronics and constructing and development,” the corporate stated in a press release.
Albemarle owns lithium brine operations in Clayton Valley close to Silver Peak within the US, in addition to within the Salar de Atacama in Chile. It additionally owns a 49 % stake in Talison Lithium, which runs the large hard-rock Greenbushes mine, in addition to a 60 % stake within the Wodgina hard-rock lithium mine in Western Australia.
The corporate’s Australia’s Kemerton I conversion plant achieved first manufacturing in July, whereas first output of spodumene focus from the primary and second trains on the MARBL lithium Wodgina mine occurred in Could and July, respectively. Albemarle additionally acquired the Qinzhou lithium conversion plant in Guangxi, China, for US$200 million final month.
In October, Albemarle secured practically US$150 million from the US Division of Power to construct a commercial-scale lithium supplies processing plant in Kings Mountain, North Carolina. The funds are a part of US$2.8 billion in grants awarded by the Biden administration for the event of electrical car battery manufacturing amenities within the US.
In Q3, the North Carolina-based firm posted internet revenue of US$897.2 million in comparison with a lack of US$392.8 million in the identical quarter a yr in the past. In the meantime, adjusted EBITDA reached US$1.2 billion, a rise of 446.9 %.
On Tuesday (November 1), Albemarle’s rival Livent (NYSE:LTHM) additionally posted its quarterly outcomes, saying it stays on observe to finish its capability growth plans.
As of 9:00 a.m. EST on Thursday (November 3), shares of Albemarle opened 5 % decrease to commerce at US$250.75.
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Securities Disclosure: I, Priscila Barrera, presently maintain no direct funding curiosity in any firm talked about on this article.
