This episode goes live on August 27; find it wherever you get your podcasts.
Norris’s full conversation with Fastmarkets’ special correspondent Andrea Hotter about the opportunities, challenges and future prospects in this crucial sector in full is available to listen to on Spotify, Apple Podcasts, Amazon Music or wherever you get your podcasts.
Volatile prices and market dynamics
Eric Norris discussed the turbulent nature of lithium prices and market dynamics, providing a comprehensive state of the market today.
Price volatility: Lithium prices have been on a rollercoaster ride, fluctuating significantly over the past year. Norris mentioned that despite recent improvements, prices are still lower than they were a year ago.
“I can’t tell you if [prices] bottomed. They’re been unpredictable,” said Norris.
Regional variances: The market situation varies greatly by region. While electric vehicle (EV) sales are growing globally at over 20%, most of the growth is concentrated in China. North America and Europe have seen weaker-than-expected growth.
“We’re still, as an industry, growing north of 20% in terms of EV sales, but the mix of that’s very different,” said Norris.
Economic considerations: Current lithium prices are below the marginal cash costs, making Western and even some Chinese expansions questionable under these economic conditions.
“Economics have to support growth,” he said, which underscores the need for better incentive pricing to avoid slowing down the energy transition.
Looking ahead, Eric shared his optimistic yet cautious outlook on the future of the lithium industry.
Long-term growth: Despite short-term challenges, the long-term prospects for lithium remain positive. Demand is expected to grow 2.5 times by the end of the decade, driven primarily by the energy transition and the rise of EV.
“We’re big believers in the energy transition and see this as a long-term growth trend,” said Norris.
Investment and expansion: To meet the growing demand, significant investments in lithium production and processing will be required. However, this will only be feasible if prices reach levels that provide adequate returns on investment. Norris emphasized the importance of aligning economic incentives with industry growth to ensure a more sustainable future.
Listen to the episode to learn more.
About Eric Norris, president of energy storage at Albemarle Corporation
Eric Norris joined Albemarle in January 2018 as Chief Strategy Officer. In this role, he managed the company’s strategic planning, M&A, and corporate business development programs as well as its investor relations efforts. In August 2018, he was appointed President of the Lithium global business unit.
Prior to joining Albemarle, Norris served as President of Health and Nutrition for FMC Corporation. Following FMC’s announcement to acquire DuPont Agricultural Chemical assets, he led the divestiture of FMC Health and Nutrition to DuPont. Previously, Norris served as Vice President and Global Business Director for FMC Health and Nutrition, and Vice President and Global Business Director for FMC Lithium. During his 16-year FMC career, he served in additional leadership roles including Investor Relations, Corporate Development and Director of FMC Healthcare Ventures. Prior to FMC, Norris founded and led an internet-based firm offering formulation and design tools to the chemical industry. He started his career in a range of leadership roles with the Rohm and Haas Company. Learn more about Eric and Albemarle here.
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