Albemarle: Don't Lose Faith Now
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Albemarle is adjusting its business model due to slow EV demand, leading to reduced new mine construction and potential future price boosts. The lithium miner reported Q3'24 revenues dropped 39% to $1.4 billion, reflecting a potential trough of the lithium price cycle, with significant cost-cutting measures in place. The company cut capex plans, slashing spending from $2.1 billion in 2023 to $0.8-$0.9 billion in 2025.
November 07, 2024 | 11:30 pm
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NEGATIVE IMPACT
Albemarle is facing challenges due to slow EV demand, leading to a 39% drop in Q3'24 revenues. The company is cutting costs and capex significantly, which may indicate a trough in the lithium price cycle.
The significant drop in revenues and the reduction in capex indicate financial challenges for Albemarle. The slow EV demand impacts their core business, and while cost-cutting measures are in place, the immediate outlook is negative. However, the potential trough in the lithium price cycle could offer future opportunities.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100