Albemarle expects 2020 profit drop as lithium prices sag

Albemarle, the world’s largest lithium producer, reported a lower-than-expected quarterly profit on Wednesday and forecast a double-digit drop in 2020 earnings on weak prices for the battery metal.

Lithium companies in the past year have been producing more than automakers currently need, denting prices. China, the world’s largest electric vehicle market, is also facing an economic slowdown due to the coronavirus.

Albemarle posted fourth-quarter net income of $90.4-million, or 85c a share, compared to $129.6-million, or $1.21 a share, a year ago.