Kemerton Lithium Project Slows Down Amid Market Slump
Albemarle, a major player in the lithium industry, has announced significant cutbacks in its operations and capital expenditure at the Kemerton lithium processing plant in Western Australia due to the recent downturn in lithium prices.
Key Details:
- Cost-Cutting Measures: Albemarle has reduced its 2024 capital expenditure from $2.1 billion in 2023 to between $1.6 billion and $1.8 billion. This move is in response to the sharp decline in lithium prices, which have fallen about 75% since the start of the 2024 financial year.
- Project Scale-Back: The company will focus on completing the first two production lines (trains) at Kemerton and continue with the construction of a third. However, plans for a fourth production line have been put on hold, impacting up to 30 jobs immediately.
- Previous Investments: Trains 1 and 2 at the Kemerton site, near Bunbury, were completed in 2022, costing over $1.5 billion. Albemarle had previously announced a $1.5 billion investment to bring trains 3 and 4 online, aiming to increase lithium hydroxide production to 100,000 tonnes per annum.
- Joint Venture Dissolution: Mineral Resources (MinRes) withdrew from its joint venture with Albemarle on the Kemerton plant in July 2023, underlining the challenges faced in the lithium market.
