Kemerton lithium hydroxide processing plant in Western Australia

[Ben Graham]

Albemarle Corporation (NYSE: ALB) the world’s largest lithium producer, announced Wednesday it will idle the remaining operating train at its Kemerton lithium hydroxide processing plant in Western Australia and place it into care and maintenance effective immediately.  

The news follows actions in 2024 to place Train 2 into care and maintenance and to cease expansion plans for Trains 3 and 4. 

The Kemerton plant processes spodumene from Greenbushes, the world’s biggest hardrock lithium mine. Albemarle holds ownership interest and half of the offtake rights from Greenbushes through an Australian joint venture.  

Kemerton, with its proven technology and commercial scale lithium hydroxide production, was built to enable the development of a Western lithium supply chain. 

“Idling operations at Kemerton was a difficult decision. It follows significant actions we have taken over the past two and a half years to reduce operating costs during an extended period of price volatility in the market,” Albemarle CEO Kent Masters said in a news release.  

“Unfortunately, recent lithium price improvements alone are not enough to offset the challenges facing Western hard-rock lithium conversion operations,” Masters said. “This decision improves our financial flexibility and preserves optionality.” 

The decision is expected to be accretive to adjusted EBITDA beginning in the second quarter of 2026 with no impact to projected 2026 volumes, Albemarle said, adding that it will meet customer demand for lithium hydroxide through other production channels. 

Albemarle’s mining interests in Australia, including its holdings in Greenbushes and Wodgina and its exploration interests in Western Australia, are not impacted by the Kemerton decision as they remain core components of the company’s strategy, it said.