Albemarle Corporation reported a net loss of $188.2 million in Q2 2024, compared to a profit of $650 million in Q2 2023, as net sales declined 40% to $1.43 billion. The significant downturn was primarily driven by lower lithium carbonate and hydroxide market pricing in the Energy Storage segment, though partially offset by higher sales volumes across all businesses. Gross margin turned negative at -0.7% compared to 23.6% in the prior year quarter.The company recorded a $292.3 million charge for capital project asset write-offs in Q2, mainly related to the indefinitely suspended construction of Kemerton Train 4 in Western Australia. Additionally, Albemarle implemented cost reduction measures, including restructuring activities and reduced planned capital expenditures, to optimize its cost structure and strengthen financial flexibility amid challenging market conditions.In March 2024, Albemarle raised...Show More

Albemarle Corporation reported a net loss of $188.2 million in Q2 2024, compared to a profit of $650 million in Q2 2023, as net sales declined 40% to $1.43 billion. The significant downturn was primarily driven by lower lithium carbonate and hydroxide market pricing in the Energy Storage segment, though partially offset by higher sales volumes across all businesses. Gross margin turned negative at -0.7% compared to 23.6% in the prior year quarter.The company recorded a $292.3 million charge for capital project asset write-offs in Q2, mainly related to the indefinitely suspended construction of Kemerton Train 4 in Western Australia. Additionally, Albemarle implemented cost reduction measures, including restructuring activities and reduced planned capital expenditures, to optimize its cost structure and strengthen financial flexibility amid challenging market conditions.In March 2024, Albemarle raised approximately $2.2 billion through mandatory convertible preferred stock issuance to fund growth initiatives. The company's Meishan lithium conversion plant in China achieved first commercial sales in Q2. Management expects Energy Storage segment results to decrease year-over-year in 2024 if current lithium prices persist, while maintaining focus on volume growth and cost optimization.