https://newsletter.en.creamermedia.com
Fire|Manufacturing|Mining|Motors|Power|Projects|Refining|Contracting|Manufacturing
Fire|Manufacturing|Mining|Motors|Power|Projects|Refining|Contracting|Manufacturing
fire|manufacturing|mining|motors|power|projects|refining|contracting|manufacturing-industry-term

Albemarle's lithium sales surge after supply contracts renegotiated

4th August 2022

By: Reuters

  

Font size: - +

Albemarle, the world's largest producer of lithium for electric vehicle batteries, raised its annual forecast on Wednesday and reported a better-than-expected quarterly profit after it renegotiated supply contracts for the metal at higher prices.

The results reflect the rising demand for lithium as the auto industry begins to pivot its manufacturing base toward EVs, a shift that has given significant pricing power to mining companies.

Compared to last year, Albemarle now expects the price at which it sells its lithium to jump at least 225% in 2022 and adjusted profit in its lithium division to rise at least 500%.

"We have shifted our lithium contracting strategy to realize greater benefits from these strong market dynamics," Albemarle CEO Kent Masters said in a statement.

Shares of the Charlotte, North Carolina-based company jumped 4.4% to $250 in after-hours trading.

The company reported second-quarter net income of $406.8-million, or $3.46 a share, compared with $424.6-million, or $3.62 a share, in the year-ago quarter.

Excluding one-time items, Albemarle earned $3.45 a share. By that measure, analysts expected earnings of $3.26 per share, according to IBES data from Refinitiv.

Adjusted profit in the company's lithium division more than quadrupled, though adjusted profit in the catalyst division, which sells to the oil refining sector, fell more than 50%. The company's bromine division, which sells chemicals used in fire extinguishers, saw a profit jump due to a jump in bromine prices.

Albemarle said its lithium production this year should rise at least 20% and that expansion projects in Chile, Australia, China and the United States are on track or ahead of schedule.

The company's executives plan to hold a conference call to discuss the quarterly results on Thursday.

Albemarle rival Livent on Tuesday said that General Motors would prepay $198-million for a supply of lithium that will not begin until 2025.

Edited by Reuters

Comments

 

Latest News

Zimbabwe invites power-storage bids to ease supply crisis
Zimbabwe invites power-storage bids to ease supply crisis
Updated 1 hour 37 minutes ago By: Bloomberg
Transnet half-year loss widens to R2.2bn
Transnet half-year loss widens to R2.2bn
Updated 2 hours 29 minutes ago By: Reuters

Showroom

BOVA Safety Wear
BOVA Safety Wear

BOVA cemented their reputation in Africa by delivering high quality engineering through their range of safety footwear. 21 years after producing...

VISIT SHOWROOM 
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 13 December 2024
Magazine round up | 13 December 2024
13th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.175 0.273s - 192pq - 2rq
Subscribe Now