Albemarle will idle Kemerton’s remaining lithium hydroxide train, citing market challenges, while maintaining Australian mining assets and supply commitments.
Albemarle Corporation has announced that it will idle the remaining operational train at its Kemerton lithium hydroxide processing facility in Western Australia, placing Train 1 into care and maintenance with immediate effect. This latest move follows earlier actions taken in 2024, when the company placed Train 2 into care and maintenance and halted expansion plans for the proposed Trains 3 and 4. The decision marks a significant shift in the company’s processing operations in the region amid ongoing challenges in the global lithium market.
The Kemerton plant has been a key asset in Albemarle’s lithium conversion portfolio. The facility processes spodumene concentrate sourced from the Greenbushes mine, widely recognized as one of the highest-quality and most significant spodumene deposits in the world. Through an Australian joint venture, Albemarle maintains an ownership stake in Greenbushes along with rights to half of its spodumene offtake. Kemerton was constructed using proven, commercial-scale lithium hydroxide production technology and was designed to help establish and strengthen a fully integrated lithium supply chain in Western Australia.
Kent Masters, Chairman and Chief Executive Officer of Albemarle, described the move as a difficult but necessary decision. He noted that over the past two and a half years, the company has undertaken a range of measures aimed at reducing operating expenses in response to prolonged volatility in lithium prices. Although lithium prices have recently shown some signs of recovery, Masters emphasized that the improvements have not been sufficient to counterbalance the structural and cost-related challenges facing Western hard-rock lithium conversion facilities. According to the company, idling the remaining train at Kemerton will enhance financial flexibility and allow Albemarle to preserve strategic options for the future.
From a financial standpoint, the company expects the decision to positively impact adjusted EBITDA beginning in the second quarter of 2026. Importantly, Albemarle stated that there will be no effect on its projected lithium sales volumes for 2026. Customer demand for lithium hydroxide will continue to be met through the company’s alternative production assets and global supply network, ensuring continuity of supply for key markets including electric vehicles and energy storage.
Notably, the idling of Kemerton’s operations does not affect Albemarle’s broader mining interests in Australia. The company’s stakes in the Greenbushes and Wodgina lithium mines, as well as its exploration projects across Western Australia, remain central to its long-term growth strategy. By separating its mining assets from its conversion operations in this decision, Albemarle is signaling continued confidence in the underlying strength of high-quality lithium resources, even as downstream processing economics face pressure.
Overall, the move reflects the company’s disciplined capital allocation approach and its focus on maintaining resilience during cyclical downturns in commodity markets.
