Albemarle plans layoffs, other cost-cutting moves to save $750M as EV demand slows
Albemarle Corp. — the largest lithium miner in the world — is cutting jobs and postponing projects, including in the Charlotte region.
On Wednesday, the Charlotte-based company outlined cost-cutting measures expected to save more than $750 million “in the near term,” Albemarle said in a news release. The company expects this year’s capital spending to range from $1.6 billion to $1.8 billion, down from about $2.1 billion last year.
The cuts come as lithium prices have plummeted and demand for electric vehicles slowed last year. Lithium-ion batteries power electric vehicles, or EVs, as well as cell phones and medical devices.
“The actions we are taking allow us to advance near-term growth and preserve future opportunities,” Albemarle CEO Kent Masters said in a statement.
In a statement to The Charlotte Observer on Wednesday Albemarle said the company must be agile to be able to “pivot and pace” with market trends.
“We have identified certain capital projects and strategic investments across the enterprise that do not need to grow as fast in the short term. This is in line with our longstanding approach to disciplined capital allocation and asset management,” Albemarle said in the statement.
The company did not answer questions about how many people will lose their jobs.
Albemarle also is refocusing on projects that are underway or nearly done, including prioritizing its permitting efforts in North Carolina to reopen the dormant Kings Mountain lithium mine, about 30 miles west of Charlotte.
But Albemarle is deferring, at least for now, two other planned projects announced last year in the Carolinas. Company officials declined to elaborate on how long they are deferring work on these plans:
▪ Spending at the mega-flex lithium conversion facility in Richburg, S.C., in Chester County. Last year, Albemarle said it would invest $1.3 billion and create more than 300 jobs to build a lithium hydroxide processing facility on 800 acres in Chester County.
▪ Investing in Albemarle Technology Park in Charlotte. Last month, Albemarle said it would invest $200 million and create at least 200 jobs to establish an advanced materials research and development facility in the University City area that would be focused on lithium and battery tech.
Albemarle also said it will save about $95 million annually with cost-cutting steps related to sales and administrative expenses, including a reduction in workers and lower spending on contracted services.
The company has about 1,100 employees in Charlotte and Kings Mountain, an increase of 85% over the last three years. Albemarle has over 8,000 workers globally.
Albemarle said it will provide more details about the moves during a presentation of its full-year 2023 results next month.
However, Chester County Economic Development Director Robert Long is optimistic about the Richburg site plans. “The lithium hydroxide project is still one of Albemarle’s priorities, and we have confidence that they will break ground this year,” he said.
The Herald reporter John Marks contributed to this report.
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