Albemarle says Chinese lithium output dented by coronavirus
2020-02-24 08:27:38 [Print]
Albemarle Corp said last Thursday that none of its employees in China have contracted the coronavirus, but its lithium production facilities in the country will operate at reduced rates for the foreseeable future.
The company said it expects the virus to dent automotive demand, hurting the entire EV supply chain. Albemarle produces lithium in Chile and Australia and sends it to China for final processing. The company's lithium is used in Teslas and other EVs.
Albemarle said last Wednesday that its earnings could drop double digits this year. Kissam on Thursday acknowledged part of that forecast was linked to coronavirus.
The company said it is utilizing only 25 percent of its lithium production capacity due to slack demand and the virus. Albemarle has several production facilities across China, including in provinces close to the epicenter of the virus.
So far, there have been only minimal order reductions, though there have been myriad logistical delays on shipping product throughout China, Kissam said.
The company said it expects the virus to dent automotive demand, hurting the entire EV supply chain. Albemarle produces lithium in Chile and Australia and sends it to China for final processing. The company's lithium is used in Teslas and other EVs.
Albemarle said last Wednesday that its earnings could drop double digits this year. Kissam on Thursday acknowledged part of that forecast was linked to coronavirus.
The company said it is utilizing only 25 percent of its lithium production capacity due to slack demand and the virus. Albemarle has several production facilities across China, including in provinces close to the epicenter of the virus.
So far, there have been only minimal order reductions, though there have been myriad logistical delays on shipping product throughout China, Kissam said.
Spodumene Li2O 5%min In port China
Unit:RMB/dmtu
China's lithium maganate producers' sales volume statistics by province by month
Unit: RMB/mt
