Albemarle calls for high lithium prices to fuel EV industry growth

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Albemarle Corp on Tuesday called for lithium prices to remain high indefinitely in order to help the mining industry develop new sources of the electric vehicle battery metal and fuel the green energy transition. mining EV

in the past year and are up nearly ninefold in the past three years, according to an index tracked by Benchmark Mineral Intelligence. For 2023, Albemarle expects the price it receives for its lithium to jump 40% over 2022 levels.

The Charlotte, North Carolina-based mining company has been building new lithium facilities in Chile, Australia, China and the United States, and is considering a major European lithium processing plant, projects for which it is planning to more than double its capital budget by 2027. Global lithium demand should hit 3.7 million tonnes by 2030, with Albemarle alone expecting to supply about 600,000 tonnes by that time. Without expansions, though, executives warned of the “potential for significant deficits” by the end of the decade without new mines and processing plants.

“Incentivizing industry to fill this gap requires strong long-term pricing,” Norris said. “The tight supply-demand situation means we have had to become more selective in partnering with our customers.”

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