Albemarle reduced its net sales forecast for 2023 though plans to increase production of lithium products by 30%

Albemarle announced in its Q3 2023 quarterly update, they had reduced their expected sales revenue for 2023 to US$9.5-9.8Bn, compared to the previous forecast of US$10.4-11.5Bn. The update stated the downgrade was the result of the sharp fall in lithium compound prices during 2023, combined with the offset between inventory cost and achieved sales price; and lower than expected output at the Talison Lithium joint venture. Despite the downgrade in forecast sales revenue, Albemarle expects to see a 15-20% increase in sales revenue year on year in 2023, with a 30-35% increase in the volume of sales compared to 2022.

Forecast to be the second-largest producer of refined lithium compounds in terms of volume in 2023, behind SQM, Albemarle is targeting a prolonged increase in lithium sales volumes in the period to 2027. Expansions at their Atacama operations are coupled with plans to increase output from its facilities in Meishan and Qinzhou, China, Silver Peak in the USA and Kemerton in Australia. Overall Albemarle is targeting to increase sales volumes of refined lithium products to ~320kt LCE contained by 2027, double volumes expected in 2023. Further expansions at Albemarle’s longer-term facilities in Richburg, South Carolina and EU Mega-Flex facility in Germany are planned to protect Albemarle’s position as one of the largest suppliers of refined lithium compounds globally over the coming decade.