Rising lithium prices can't hide the industry's cold winter Yabao(ALB.US) reported quarterly losses exceeding expectations and shut down key Australian production lines

LootboxPhobia · 2026-02-12T02:39:52+00:00

Yabao Company reports quarterly losses exceeding expectations, due to weak battery metal prices, and will shut down a major processing plant in Australia. Revenue for the fourth quarter was $1.43 billion, with a net loss of $456 million, significantly impacted by the plummeting lithium prices. Despite a 23% increase in sales volume, future outlook remains cautious.

LootboxPhobia

2026-02-12 02:39:52

Abstract generation in progress

According to CnFQ, the world’s largest lithium producer Albemarle Corporation (ALB.US) announced on Wednesday that its quarterly loss exceeded expectations, and stated that due to the continued weakness in battery metal prices, it will shut down a major processing plant in Australia. The financial report shows that Albemarle’s revenue for the fourth quarter reached $1.43 billion, a year-over-year increase of 16.3%, surpassing expectations by $80 million; net loss was $455.9 million, equivalent to a loss of $3.87 per share, compared to a net profit of $33.6 million, or $0.29 per share, in the same period last year.

Over the past two years, lithium prices have plummeted by more than 90%, partly due to oversupply from China, leading Albemarle and its peers to cut jobs, be acquired, and delay projects. Although prices have rebounded somewhat in recent months, they remain well below the all-time high set in 2023.

Albemarle stated that after closing one production line at its Kemerton processing plant in Western Australia last year, it has idled the last active processing line at that facility. The company also canceled plans to add two new production lines.

CEO Kent Masters said in a statement, “Unfortunately, the recent rise in lithium prices is not enough to offset the challenges faced by the hard rock lithium conversion business in Western Australia.”

The Kemerton plant processes spodumene from the Greenbushes mine, which is the world’s largest lithium mine, jointly owned by Albemarle and China’s Tianqi Lithium.

Excluding one-time items (such as costs related to its upcoming sale of the Ketjen refining catalyst business), Albemarle reported a loss of $0.53 per share, compared to analysts’ expectations of a $0.41 loss per share.

Despite the ongoing weak prices, Albemarle’s report states that sales of lithium products increased by 23%.

The company expects revenue of $6 billion for fiscal year 2026 and an adjusted earnings per share of $2.61.

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