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Albemarle to Cut Jobs as Lithium Market Struggles in Downturn

Sacks of lithium carbonate at the Albemarle Corp.'s lithium processing facility in Antofagasta, Chile, on Saturday, March 2, 2024. US Treasury Secretary Janet Yellen said the US is likely to increase mineral imports from Chile, a key supplier of lithium used in the batteries that power electric vehicles. (Cristobal Olivares/Bloomberg)

(Bloomberg) -- Albemarle Corp. plans to cut its global workforce by 6%-7% as part of efforts to reduce costs as lithium prices slump and demand slows.

The world’s largest producer of the battery metal said the headcount reductions will affect about 15% of its non-manufacturing workforce, according to an earnings statement on Wednesday.

The lithium miner also implemented a new operating structure effective November 1 to increase agility, deliver cost savings and maintain long-term competitiveness, the statement said.  

Together, these efforts will likely save about $300 million to $400 million for the Charlotte, North Carolina-based firm. Additional measures that saved $100 million were rolled out this year, according to the statement.

Albemarle expects capital expenditures for 2025 to be between $800 million and $900 million, with the majority going to “sustaining existing assets and resources and the remainder allocated to select growth projects and high-return, quick payback improvements,” it said in the statement.

©2024 Bloomberg L.P.