Energy
Friday, May 3rd, 2024 6:50 pm EDT
Key Points
- Albemarle’s plans to reopen the Kings Mountain lithium mine in North Carolina, aimed at boosting domestic lithium production and supporting the U.S. electric-vehicle battery supply chain, are facing delays due to a collapse in lithium prices.
- Eric Norris, Albemarle’s president of energy storage, stated that while progress is ongoing, the reopening of the Kings Mountain mine will be delayed. The mine holds significant potential, with the capacity to produce enough material for manufacturing 1.2 million electric vehicles annually.
- Despite challenges, including the sharp decline in global lithium prices and adjustments in expansion plans, Albemarle remains committed to its long-term goals. The company received a $90 million grant from the Defense Department to support domestic mining, aligning with the Biden administration’s push to establish a battery supply chain independent of China.
Albemarle, a leading lithium producer, is facing delays in its plans to reopen the Kings Mountain lithium mine in North Carolina due to a collapse in lithium prices. Originally slated for reopening as early as late 2026 to boost domestic lithium production and support the U.S. electric-vehicle battery supply chain, the project’s timeline has been pushed back. Eric Norris, Albemarle’s president of energy storage, acknowledged the slowdown but affirmed that progress continues despite concerns. Kings Mountain boasts one of the world’s richest deposits of spodumene ore, a key lithium source, with the potential to supply material for manufacturing 1.2 million electric vehicles annually. However, Albemarle lacks a precise operational date for Kings Mountain, with the permitting process alone expected to take two years. Construction will follow, making it a multiyear endeavor. The Biden administration’s focus on establishing a domestic battery supply chain has driven support for domestic lithium production, with Albemarle receiving a $90 million grant from the Defense Department for this purpose. Once operational, Kings Mountain would revive a historic lithium mine that operated from 1937 until the 1980s under previous ownership. Albemarle’s expansion plans have been hampered by the sharp decline in global lithium prices, prompting the company to halt a chemical plant project in South Carolina. Despite strong demand for electric vehicles, lithium prices have fallen below the threshold needed to justify investment projects. Albemarle’s first-quarter profit plummeted 99% compared to the previous year, though earnings largely met Wall Street expectations and revenue exceeded forecasts. This performance was positively received by investors, reflected in a notable increase in Albemarle’s share price.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/03/albemarle-plans-to-reopen-kings-mountain-lithium-mine-will-take-years.html
