Lithium Prices Plummeting: Impact on Albemarle Stock
Lithium prices plunge, hurting Albemarle
Charlotte, North Carolina-based Albemarle has already slowed spending on a new $1.3 billion lithium processing project planned in neighboring South Carolina. That's because lithium prices have dropped as much as 90% since the start of 2023. Deferring spending on that project is just one sign that Albemarle is tightening its belt.
Immediate Financial Action
- The company plans to raise $2 billion through the sale of new convertible preferred stock.
- The funds will be utilized for investments in lithium operations in Australia and China and debt repayment.
Existing shareholders may face dilution due to the capital raise, reflecting the challenging market conditions and declining demand for lithium.