AT A GLANCE: Lithium producer Albemarle sales earnings jump in Q1 on greater demand

A summary of United States-based lithium producer Albemarle’s results for the first quarter of 2021, as stated in its quarterly report published on Wednesday May 5.

In brief

  • The company attributed the 17.8% annual growth in net lithium sales in the first quarter to higher sales volumes after some customers accelerated orders under long-term deals.
  • It expects sales volumes to be marginally higher during 2021 compared with 2020 due to productivity improvements.
  • Total sales guidelines for 2021 across the lithium, catalysts and bromine divisions is is $3.2-3.3 billion.
  • Production capacity expansion projects are under way and are due to be finalized by the end of this year. This will allow the company to double its nameplate capacity to 175,000 tonnes of lithium carbonate equivalent by 2022.

Key figures for lithium division, Q1 2021
(year-on-year change)

Net sales
$279 million, up 17.8% from $236.8 million

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda)
$106.4 million, up 35.37% from $78.6 million

What to read next
Mexico’s production and consumption of long steel fell year-on-year in May due to weakness in the country's construction sector, but posted a month on month gain, according to the latest data from the Mexican steel chamber, CANACERO.
Despite the current headwinds, strategic partnerships and continued investment in the right areas, coupled with the underlying strong long-term demand fundamentals, will pave the way for success for lithium producers, according to the participants of the executive panel during the Fastmarkets Lithium Supply and Battery Raw Materials Conference, which took place from June 23-26 in Las Vegas, Nevada.
The US needs well-defined and stable policy around critical minerals, energy transition and trade, while derisking projects and maintaining good relations with other countries to be able to establish sustainable electric vehicle (EV) and energy storage systems (ESS) supply chains in North America, according to industry experts.
The US and Europe must adopt long-term, consistent policies and should learn lessons from China, according to lithium industry experts speaking at Fastmarkets’ Lithium Supply and Battery Raw Materials Conference in Las Vegas, US, over June 22-25.
Producers in Arkansas' Smackover Formation are advancing lithium extraction projects following recent regulatory approvals. Supported by oil and gas expertise and state incentives, the region is positioning itself as a key player in the US lithium supply chain.
This consultation was done as an adhoc methodology review process, aiming to better reflect the physical market under indexation, considering its reduced liquidity linked to the combination of seasonal demand patterns and the implementation of cross-border import tariffs between the US and China. No feedback was received during the consultation period and therefore Fastmarkets will […]