Albemarle Announces Plans to Idle its Kemerton Lithium Hydroxide Processing Plant

Albemarle (NYSE: ALB) will idle Train 1 at its Kemerton lithium hydroxide plant in Western Australia and place it into care and maintenance effective immediately.

Rhea-AI Summary

Albemarle (NYSE: ALB) will idle Train 1 at its Kemerton lithium hydroxide plant in Western Australia and place it into care and maintenance effective immediately. This follows 2024 actions to idle Train 2 and to cease expansion plans for Trains 3 and 4.

The plant processes spodumene from Greenbushes. Albemarle said the decision improves financial flexibility, is expected to be accretive to adjusted EBITDA beginning in Q2 2026, and will not affect projected 2026 volumes. Mining interests in Australia remain unchanged.

Positive

• Expected to be accretive to adjusted EBITDA beginning Q2 2026
• No impact to projected 2026 volumes
• Australian mining interests (Greenbushes, Wodgina) remain unaffected

Negative

• Kemerton production capacity reduced by idling Train 1
• Company previously ceased expansion plans for Trains 3 and 4, limiting future capacity growth

Argus Feb 12 session

-9.41% close to close Open Argus

Details

News Market Reaction – ALB

On Feb 12, the first trading day after this news, ALB closed 9.41% below the previous close.

Data tracked by StockTitan Argus for the Feb 12 session.

Market Context

On Feb 12, the first trading day after this news, the stock closed 9.4% below the previous close. A ...

Analysis

On Feb 12, the first trading day after this news, the stock closed 9.4% below the previous close. A negative reaction despite management emphasizing EBITDA accretion and unchanged 2026 volumes would fit a pattern where structural or portfolio changes draw scrutiny, as with the prior -8.91% move on the Ketjen stake sale. The Kemerton idling reflects continued response to lithium price volatility and cost pressures, and markets could focus on long-term utilization of Australian assets. Historical mixed responses to offtake and strategic announcements suggest that confidence in execution and future demand assumptions remains a key risk factor.

Key Figures

EBITDA impact timing: Beginning Q2 2026

EBITDA impact timing

Beginning Q2 2026

Decision expected to be accretive to adjusted EBITDA from the second quarter of 2026

Historical Context

5 past events · Latest: Jan 13

5 events

1. Jan 13

   Earnings date notice

   24h Move

   +0.4%

   Announcement of timing and access details for Q4 2025 earnings release.

2. Dec 12

   Offtake agreement news

   24h Move

   -1.4%

   Cesium concentrate offtake agreement and reaffirmed 2026 production target by partner.

3. Nov 05

   Q3 2025 earnings

   24h Move

   +4.0%

   Q3 results with higher adjusted EBITDA and stronger cash generation despite a net loss.

4. Oct 27

   Dividend declaration

   24h Move

   +0.5%

   Quarterly dividend of $0.405 per share, annualized at $1.62.

5. Oct 27

   Ketjen stake sale

   24h Move

   -8.9%

   Agreement for KPS to acquire controlling stake in Ketjen with Albemarle retaining minority interest.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

lithium hydroxide, spodumene, offtake rights, adjusted EBITDA, +2 more

6 terms

lithium hydroxide technical

"its Kemerton lithium hydroxide processing plant in Western Australia"

A white inorganic chemical used as a key raw material in making the active material for many lithium-ion batteries, especially those used in electric vehicles and energy storage. Think of it as a concentrated ingredient in a battery’s recipe: its availability and price affect battery makers’ costs and production pace, so shifts in supply, demand or production capacity can materially influence companies and investors across the clean-energy and automotive supply chains.

spodumene technical

"The Kemerton plant processes spodumene from the Greenbushes mine"

Spodumene is a hard mineral that contains much of the world’s recoverable lithium, the key metal used in rechargeable batteries for electric cars and grid storage. For investors it matters because spodumene deposits and the mines that produce them influence lithium supply, costs and company valuations—think of it as a pantry of battery ingredients whose size, quality and accessibility affect prices and the profitability of battery- and EV-related businesses.

offtake rights financial

"ownership interest and half of the offtake rights from Greenbushes"

A contractual right allowing a buyer to purchase a future share or all of a producer’s output (such as minerals, energy, or manufactured goods) at agreed terms. Like pre-ordering and locking in supply from a factory, offtake rights give the seller predictable revenue and the buyer assured access to product. Investors watch them because they reduce sales risk, help secure project financing, and can materially affect a company’s future cash flow and valuation.

adjusted EBITDA financial

"expected to be accretive to adjusted EBITDA beginning in the second quarter"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

forward-looking statements regulatory

"This press release contains statements concerning our expectations ... which constitute "forward-looking statements""

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Annual Report on Form 10-K regulatory

"those described under "Risk Factors" in Albemarle's most recent Annual Report on Form 10-K"

An annual report on Form 10‑K is a required, comprehensive filing that publicly traded companies give to regulators and investors summarizing their business, results of operations, detailed financial statements reviewed by independent auditors, material risks, legal issues and management’s discussion of performance. Investors use it like a company’s year‑end report card and medical checkup: it reveals how the business made money, where it is vulnerable, and the facts needed to compare value, judge risk and make informed investment decisions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Decision improves financial flexibility and preserves optionality

CHARLOTTE, N.C., Feb. 11, 2026 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, today announced it will idle the remaining operating train, Train 1, at its Kemerton lithium hydroxide processing plant in Western Australia and place it into care and maintenance effective immediately. Today's announcement follows actions in 2024 to place Train 2 into care and maintenance and to cease expansion plans for Trains 3 and 4.

The Kemerton plant processes spodumene from the Greenbushes mine, one of the world's best spodumene resources. Albemarle holds ownership interest and half of the offtake rights from Greenbushes through an Australian joint venture. Kemerton, with its proven technology and commercial scale lithium hydroxide production, was built to enable the development of a Western lithium supply chain.

"Idling operations at Kemerton was a difficult decision. It follows significant actions we have taken over the past two and a half years to reduce operating costs during an extended period of price volatility in the market," said Kent Masters, Albemarle Chairman and CEO. "Unfortunately, recent lithium price improvements alone are not enough to offset the challenges facing Western hard-rock lithium conversion operations. This decision improves our financial flexibility and preserves optionality."

The decision is expected to be accretive to adjusted EBITDA beginning in the second quarter of 2026 with no impact to projected 2026 volumes. Albemarle will meet customer demand for lithium hydroxide through other production channels.

Albemarle's mining interests in Australia, including its holdings in Greenbushes and Wodgina and its exploration interests in Western Australia, are not impacted by the Kemerton decision as they remain core components of the company's strategy.

In a separate press release issued today, Albemarle shared its fourth quarter and full year 2025 earnings results. The company will provide further details on its conference call to discuss its financial results at 8 a.m. EST on Thursday, February 12, 2026.

Access to the call is available via webcast or direct dial. A link to the webcast can be found through Albemarle Corporation's website at http://investors.albemarle.com. Direct dial numbers are provided below: 

Participant Dial-in Numbers: 
U.S. & Canada Toll-Free: 1 (800) 590-8290
International: 1-240-690-8800
Conference ID: ALBQ4
Attendee URL: 
https://albemarle-q4-2025-earnings-call.open-exchange.net/ 

About Albemarle 
Albemarle Corporation (NYSE: ALB) leads the world in transforming essential resources into critical ingredients for mobility, energy, connectivity and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allows us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at Albemarle.com.

Albemarle regularly posts information to Albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, U.S. Securities and Exchange Commission filings and other information regarding the company, its businesses and the markets it serves. 

Forward-Looking Statements
This press release contains statements concerning our expectations, anticipations and beliefs regarding the future, which constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties, often contain words such as "anticipate," "believe," "estimate," "expect," "guidance," "intend," "may," "outlook," "scenario," "should," "would," and "will" and similar references to future periods. Forward-looking statements may include statements regarding: our 2026 company and segment outlooks, including guidance related to impact on 2026 EBITDA and volumes; plans and expectations regarding customer demand, production impacts, financial flexibility and optionality, potential market pricing of lithium and other underlying assumptions and outlook considerations, other mining interests and projects, and all other information relating to matters that are not historical facts. These and other forward-looking statements are based on management's current estimates, assumptions and expectations and involve risks and uncertainties that could significantly affect expected results. Actual results could differ materially from those expressed or implied in the forward-looking statements if one or more of the underlying estimates, assumptions or expectations prove to be inaccurate or are unrealized. Factors that could cause Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include: changes in economic and business conditions; changes in trade policies and tariffs; financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in lithium market prices; potential production volume shortfalls; increased competition; changes in product or conversion demand; availability and cost of raw materials and energy; technological change and development; completion of the audit of our annual financial statements; fluctuations in foreign currencies; changes in laws and government regulation; regulatory actions, proceedings, claims or litigation; cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; geopolitical conflicts and political unrest; trade policies and tariffs; changes in inflation or interest rates; volatility in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; performance of Albemarle's partners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarle files with the SEC, including those described under "Risk Factors" in Albemarle's most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q, which are filed with the SEC and available on the investor section of Albemarle's website (investors.albemarle.com) and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release. Albemarle assumes no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

Investor Relations Contact: +1 (980) 308-6194, invest@albemarle.com
Media Contact: Ryan Dean, +1 (980) 308-6310, media@albemarle.com
Australia Media Contact: mediacontactaustralia@albemarle.com

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SOURCE Albemarle Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why did Albemarle (ALB) idle Kemerton Train 1 on February 11, 2026?

Albemarle said the decision was to improve financial flexibility amid price volatility. According to the company, recent lithium price improvements were insufficient to offset challenges at Western hard-rock conversion operations, prompting care and maintenance for Train 1.

Will the Kemerton idling affect Albemarle's 2026 lithium hydroxide volumes (ALB)?

No, Albemarle says there is no impact to projected 2026 volumes. According to the company, customer demand will be met through other production channels and mining interests remain in place.

When will the Kemerton idling impact Albemarle's financial results (ALB)?

The company expects accretion to adjusted EBITDA beginning in Q2 2026. According to Albemarle, the idling improves financial flexibility while preserving optionality for future operations.

Does idling Kemerton affect Albemarle's Australian mining assets like Greenbushes (ALB)?

No, Albemarle states its mining interests in Australia are not impacted by the Kemerton decision. According to the company, holdings in Greenbushes and Wodgina remain core to its strategy.

How will Albemarle (ALB) supply customers after Kemerton Train 1 is idled?

Albemarle will meet lithium hydroxide demand through other production channels. According to the company, existing offtake rights and alternative production routes will be used to fulfill customer requirements.