CHARLOTTE, N.C., Feb. 22,
2023 /PRNewswire/ -- Albemarle Corporation (NYSE:
ALB), ("Albemarle"), a global
leader in transforming lithium and bromine into essential
ingredients for mobility, energy, connectivity and health,
announced today that it has signed definitive agreements
with Mineral Resources Limited (ASX: MIN) ("MinRes") to
restructure the parties' MARBL lithium joint venture in
Australia ("MARBL") and separately
for MinRes to invest in Albemarle
conversion assets in China.
"Our Australian lithium assets are core to Albemarle's strategy to build a globally
diversified portfolio of best-in-class assets and resources," said
Kent Masters, Albemarle CEO.
"Inherent to that strategy is managing our global portfolio to
maximize growth optionality and maintain a leading position in a
dynamic, growing market. Our restructured MARBL joint venture
enables each partner to deliver long-term value to our
customers."
"We have a tremendous opportunity ahead of us with the
transition to clean transportation and anticipated rapid growth of
lithium-ion batteries," said Eric
Norris, president of Albemarle Energy Storage. "We expect
our joint ventures with MinRes to support our strategy to expand
our global lithium resource and conversion capacity for our
customers while investing with discipline to ensure the highest
returns for our shareholders."
The execution of these agreements follows the announcement of
the signing of a non-binding letter of understanding in
February 2022.
Transactions Overview
In Australia, upon closing of
the restructured MARBL arrangements, which are subject to
Australian regulatory approvals:
- Albemarle will increase its
interest in the first two conversion trains of the Kemerton
processing plant from 60% to 85%. Albemarle will operate Kemerton trains 1 and 2
on behalf of the joint venture.
- MinRes will increase its interest in the Wodgina Lithium Mine
Project from 40% to 50%. MinRes will operate the Wodgina mine on
behalf of the joint venture.
- Consideration for Albemarle's
increased stake in Kemerton will be offset by consideration for
MinRes's increased stake in Wodgina.
- Albemarle will supply MinRes's
15% share of spodumene for use by the joint venture at the Kemerton
plant from the Greenbushes mine. MinRes will pay market price for
this share of Greenbushes spodumene.
- Each of Albemarle and MinRes
will market its own share of lithium products converted from
Wodgina spodumene.
- Albemarle and MinRes will
enter into a commercial agreement for Albemarle to arrange conversion of both
parties' shares of Wodgina spodumene. MinRes commits to fund 50% of
the capital costs for downstream conversion capacity Albemarle nominates to process Wodgina
spodumene. MinRes is expected to pay approximately US$350 million for its initial share of capital
costs of this conversion capacity as of closing.
Albemarle is expected to pay MinRes a completion adjustment
currently estimated to be US$100
million to US$150 million
reflecting the April 1, 2022,
effective date.
In China, which is subject to
Chinese regulatory approvals:
- MinRes will acquire a 50% interest in Albemarle's 100%-owned Qinzhou and Meishan
plants in China. Qinzhou has a
designed capacity of 25ktpa. The plant will undergo modifications
to be able to convert Wodgina spodumene and is expected to commence
that conversion in early 2024. The Meishan plant, which is
under construction with a designed capacity of 50ktpa, is scheduled
to be commissioned by year-end 2024. Albemarle will continue to operate Meishan and
Qinzhou.
About Albemarle Corporation
Albemarle Corporation
(NYSE: ALB) is a global leader in transforming essential resources
such as lithium and bromine into critical ingredients for mobility,
energy, connectivity, and health. Together with our world-class
resources, technical and process knowledge, and safety and
sustainability performance, we partner with our customers to
pioneer new ways to move, power, connect, and protect. We are
committed to building a more resilient world where people and
planet thrive. Learn more about Albemarle at www.albemarle.com and at
@albemarlecorp on LinkedIn, Twitter, and Facebook.
Albemarle regularly posts
information to our website, including notification of events, news,
financial performance, investor presentations and webcasts,
non-GAAP reconciliations, SEC filings and other information
regarding the company, its businesses, and the markets we
serve.
Forward-Looking Statements
This press release contains
statements concerning our expectations, anticipations, intentions,
beliefs, or strategies 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 that could cause actual results, conditions and
events to differ materially from those anticipated, often contain
words such as "anticipate," "believe," "could," "estimate,"
"expect," "intend," "may," "should," "would," "will" and variations
of such words and similar expressions. Forward-looking statements
may include, without limitation, statements regarding the
restructuring of our MARBL joint venture and investment by MinRes,
which are subject to certain closing conditions and receipt of
regulatory approvals, and the anticipated benefits of such
restructuring, timing for commissioning, construction, and
production for our Kemerton, Wodgina, Qinzhou, and Meishan plants,
and all other information relating to matters that are not
historical facts. Factors that could cause actual results to differ
materially from the outlook expressed or implied in any
forward-looking statement include, without limitation: changes in
economic and business conditions; adverse changes in liquidity or
financial or operating performance; changes in the demand for our
products or the end-user markets in which our products are sold;
fluctuations in lithium market pricing; changes in laws and
government regulation; and the other factors detailed in the
reports we file with the SEC, including those described under "Risk
Factors" in our Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q, which are available on the investor section of our
website (investors.albemarle.com). These forward-looking statements
speak only as of the date of this press release. We assume no
obligation to provide any revisions to any forward-looking
statements should circumstances change, except as otherwise
required by securities and other applicable laws.
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SOURCE Albemarle Corporation