Albemarle, the leading global producer of lithium, is experiencing significant growth
According to McKinsey & Co., the demand for lithium, a crucial component for electric vehicle batteries, is expected to increase significantly in the coming years, from 500,000 metric tons in 2021 to three million to four million metric tons within the next decade. Albemarle, the world's leading producer of lithium, has plans to expand its operations to meet this growing demand. It aims to open another domestic lithium mine in North Carolina by 2027 and is currently constructing a processing facility in South Carolina for battery-grade lithium hydroxide production. This facility will support the manufacturing of 2.4 million electric vehicles annually and will be capable of processing lithium from recycled batteries.
However, Albemarle faces potential challenges, including the impact of a possible economic downturn on EV demand, the emergence of new battery chemistries that may reduce the need for lithium, the growth of battery recycling, and increased competition in the industry. Notably, Tesla has started constructing a lithium refinery in Texas in 2023. To gain insights into the extraction process, challenges, and future production trends of lithium, CNBC received a behind-the-scenes look at Albemarle's operations in Chile and the United States.
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