Albemarle Corporation: Is The EV Demand Actually Flattening & Impacting Their Performance?

Albemarle Corporation’s 2023 earnings reported net sales of $9.6 billion, a 31% rise compared to 2022 with volume growth contributing 21% to the increase. The energy storage sector delivered 35% volumetric growth. The corporation’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023 were $2.8 billion or $3.4 billion, excluding a lower-cost charge recorded in Q4. In the face of the current volatile market environment, Albemarle decided to rephase its growth investments and optimize its cost structure to unlock over $750 million of incremental cash, thereby sustaining near-term growth and preserving future opportunities. The company’s future earnings presented certain price scenarios based on recent lithium market prices.