Albemarle considering expansion in Europe

The biggest US-based lithium producer is looking to expand and continues to evaluate “a broad range of … opportunities to expand customers’ future needs,” Albemarle officials said on Thursday May 4

The initiative includes plans for a lithium conversion and battery recycling “mega-flex” facility in Europe, as well as expansion of existing facilities in La Negra, Chile; Kemerton, Australia and Silver Peak, Nevada, in the US, as well as facilities in Qinzhou and Meishan in China.

The expansion of existing facilities alone will triple Albemarle’s sales volumes to more than 300,000 tonnes per year of lithium carbonate equivalent (LCE) by 2027, Scott Tozier, Albemarle’s executive vice president and chief financial officer, said during the call.

The company’s growth initiative also includes its March 27 proposal to acquire Liontown Resources, which owns two lithium projects in Australia, in addition to the mega-flex facility in Europe.

The proposed lithium conversion and recycling facility in the EU will strengthen Albemarle’s footprint in the continent, according to its earnings presentation. The new facility would join the company’s existing Langelsheil production facility in Germany.

“We are looking to lithium conversion and recycling facility in Europe,” Albermarle chairman of the board Kent Masters said.

“Another new facility in Europe shows how interest in recycling has been heating up over the last year,” Fastmarkets analyst Julia Harty said.

But a great number of recyclers joining the market introduces a challenge, according to Harty: tight competition for scrap battery feedstock is causing recyclers to run at reduced capacity, which, in turn, eats into their profit margins.

“Recyclers with good offtake agreements and cash to survive the tough times will be well-placed for when the amount of end of life (EOL) scrap batteries starts to pick up significantly toward the end of the decade,” Harty said. “Until then we might see the number of recyclers rise and then contract to a number more in proportion to the amount of feedstock.”

Battery recycling market still in its infancy

Currently 68% of the world’s battery production capacity is in Asia, followed by 18% in Europe and 14% in the US, according to Fastmarkets data. But Fastmarkets analysts expect this distribution to be 52% in Asia, 31% in Europe and 17% in the US by 2033.

“So, the European battery market is still in its early days,” Harty said.

Fastmarkets analysts anticipate that the mandated minimum amount of recycled metal needed in new batteries in Europe in 2030 will be 4% for lithium and nickel and 12% for cobalt, rising to 10% for lithium, 12% for nickel and 20% for cobalt by 2035.

“We’re hearing that in Korea the level of secondary battery raw materials needed in new batteries is so high that the recycled metals are actually trading at a premium in that region,” Harty said. “It shows the importance of regulations in driving forward the battery recycling market.”

On April 5, Fastmarkets announced a proposal to launch weekly price assessments for black mass payable indicators, delivered South Korea.

Albemarle previously announced on March 22 that it will be entering the lithium battery recycling business with the building of a similar mega-flex facility in Richburg, South Carolina, that will process diverse lithium stock, including lithium from recycled lithium batteries.

The Richburg facility is “strategically placed in the Southeast, in the growing [electric vehicle] and battery resource region,” Masters said.

Albemarle expects the construction of the Richburg facility to start in late 2024.

Want more insights and forecasts for the battery recycling market?

Keep up to date with global market insights and predictions for the battery recycling market with the Fastmarkets NewGen Battery Recycling Outlook.

What to read next
The US aluminium industry is experiencing challenges related to tariffs, which have contributed to higher prices and premiums, raising questions about potential impacts on demand. Alcoa's CEO has noted that sustained high prices could affect the domestic market. While trade agreements might provide some relief, analysts expect premiums to remain elevated in the near term. However, aluminum demand is projected to grow over the long term, supported by the energy transition and clean energy projects. To meet this demand, the industry will need to increase production, restart idle smelters and address factors such as electricity costs and global competition.
The DRC is set to decide on the future of its cobalt export ban on June 22, potentially extending, modifying or ending the policy. Aimed at boosting local refining and value creation, the ban has left global markets uncertain, with stakeholders calling for clarity as cobalt prices fluctuate and concerns over long-term demand grow.
Read Fastmarkets' monthly battery raw materials market update for May 2025, focusing on raw materials including lithium, cobalt, nickel, graphite and more
Cobalt Holdings plans to acquire 6,000 tonnes of cobalt. Following their $230M London Stock Exchange listing, this move secures a key cobalt reserve. With the DRC’s export ban affecting prices, the decision reflects shifting industry dynamics
The recent US-China agreement to temporarily reduce tariffs is a major step for global trade, with tariffs on US goods entering China dropping from 125% to 10% and on Chinese goods entering the US decreasing from 145% to 30% starting May 14. While this has boosted markets and created optimism, key industries like autos and steel remain affected, leaving businesses waiting for clearer long-term trade policies.
The US-China trade truce announced on May 12 has brought cautious optimism to China’s non-ferrous metals markets, signaling a possible shift in global trade. Starting May 14, the removal of additional tariffs has impacted sectors like battery raw materials, minor metals and base metals such as zinc and nickel, with mixed reactions. While the improved sentiment has lifted futures prices and trade activity, the long-term effects remain unclear due to challenges like supply-demand pressures and export controls.