{"id":1131531,"date":"2019-08-08T06:35:06","date_gmt":"2019-08-08T11:35:06","guid":{"rendered":"https:\/\/www.mining.com\/?p=998792"},"modified":"2019-08-08T06:35:06","modified_gmt":"2019-08-08T11:35:06","slug":"albemarle-puts-the-break-on-growing-plans-amid-lithium-market-weakness","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1131531","title":{"rendered":"Albemarle puts the break on growing plans amid lithium market weakness"},"content":{"rendered":"<p>Albemarle Corp (NYSE: ALB), the<br \/>\nworld\u2019s No. 1 lithium producer, is delaying plans to add about 125,000 tonnes<br \/>\nof processing capacity as an oversupply of the white metal used to make the batteries<br \/>\nthat power electric vehicles (EV) and high tech devices continues to push down<br \/>\nprices.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The US-based lithium giant said the<br \/>\nmove would reduce its capital expenditure by about $1.5 billion over the next<br \/>\nfive years, adding it expected to become free cash flow positive in 2021.<\/p>\n<p>Albemarle\u2019s decision comes as lithium prices are <a href=\"https:\/\/www.mining.com\/lithium-and-cobalt-prices-to-remain-under-pressure-as-supply-overtakes-demand-report\/\"  rel=\"noreferrer noopener\" aria-label=\"expected to remain subdued (opens in a new tab)\">expected to remain subdued<\/a> this year after changes to Beijing\u2019s EV subsidy regime has injected noticeable short-term unpredictability, while undermining demand from Chinese customers.<\/p>\n<p>Supply, meanwhile, has been surging<br \/>\nin response to the 2016-2017 price spike. According to<\/p>\n<p>Fastmarkets estimates, the global<br \/>\nlithium market glut will grow from 28,000 tonnes in 2018 to 68,000 tonnes this<br \/>\nyear and 146,000 tonnes in 2021.<\/p>\n<p>Albemarle\u2019s announcement comes only a week after the Charlotte, North Carolina-based revised a <a href=\"https:\/\/www.mining.com\/mineral-resources-signs-1-15b-lithium-deal-albemarle\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">deal to buy into Australia\u2019s Mineral Resources<\/a>\u2019(ASX: MIN) Wodgina mine.<\/p>\n<p>It also follows the company\u2019s <a href=\"https:\/\/www.mining.com\/web\/albemarle-raises-2019-adjusted-profit-forecast\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">second quarter results<\/a>, which showed lithium sales were not affected by global trade tensions and China\u2019s cuts to EV subsidies in June.<\/p>\n<p><em>More to come\u2026<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The world&rsquo;s No. 1 lithium producer is delaying plans to add about 125,000 tonnes of processing capacity.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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