Albemarle warns lithium sales sliding amid weak EV market
2020-08-10 10:44:42 [Print]
Albemarle Corp, the world's largest producer of lithium for electric vehicle batteries, warned last week that its third quarter sales and profit will dip as automakers produce fewer EVs due to the COVID-19 pandemic.
The warning came after the company posted a 45 percent drop in second-quarter profit due in part to low prices for the white metal caused by global oversupply.
Lithium producers boosted output last year in anticipation of a demand rush from EV manufacturers going into 2020, but the COVID-19 pandemic upended those plans and dented global automobile sales, effectively pausing the EV revolution.
Albemarle said it now expects low automotive production to be felt more acutely in the third quarter, with prices sliding as stockpiles rise.
The warning came after the company posted a 45 percent drop in second-quarter profit due in part to low prices for the white metal caused by global oversupply.
Lithium producers boosted output last year in anticipation of a demand rush from EV manufacturers going into 2020, but the COVID-19 pandemic upended those plans and dented global automobile sales, effectively pausing the EV revolution.
Albemarle said it now expects low automotive production to be felt more acutely in the third quarter, with prices sliding as stockpiles rise.
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