Albemarle Corporation posted its financial results for Q4 and the full year of 2024, reflecting the impact of lower lithium prices despite cost reduction efforts. The company implemented efficiency measures to remain competitive but did not meet analyst expectations due to a lithium supply glut driven by overproduction in China.
Chairman and CEO Kent Masters stated that Albemarle is taking actions to reduce costs, optimize its conversion network, and increase efficiencies. While dynamic market conditions persist, the company remains focused on financial flexibility and long-term growth.
In Q4 2024, Albemarle reported $1.2 billion in revenue with a net income of $75 million, or $0.29 per diluted share. However, the adjusted diluted loss per share was $1.09. The Energy Storage segment, the company’s largest, recorded $617 million in sales, a 63% decline from the previous year due to a sharp 53% drop in lithium prices and a 10% decrease in sales volumes.
The Specialties segment saw a slight revenue decline of 2% to $333 million, with adjusted EBITDA increasing by $43 million to $73 million. The Ketjen business, which produces catalysts, experienced a 17% drop in sales to $282 million due to lower volumes.
For the full year, Albemarle generated $5.4 billion in revenue. Energy Storage volumes grew by 26%, but restructuring costs led to a net loss of $1.2 billion, or $11.20 per diluted share. The company achieved $1.1 billion in adjusted EBITDA and generated $702 million in operating cash flow through cost controls and working capital management.
Looking ahead to 2025, Albemarle is tightening spending and improving efficiency to navigate a volatile lithium market. It has achieved over 50% of its $300-400 million cost reduction goal and enhanced lithium conversion efficiency at La Negra and Meishan. By mid-2025, the Chengdu site will enter care and maintenance, while Qinzhou will shift some production to lithium carbonate.
The company is also advancing lithium processing at its Kings Mountain, North Carolina facility, utilizing advanced technology to support energy storage needs. Albemarle continues to focus on high-quality lithium production for EVs, renewable energy storage, and digital applications, reinforcing its commitment to sustainability and innovation.
