:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2046568065-40c6ed97c27542e1a1d170ac799a5db3.jpg)
Key Takeaways
- Albemarle was the biggest loser on the S&P 500 in intraday trading Monday as tumbling lithium prices continue to weigh on the company’s business.
- The world’s biggest lithium producer reported an almost 40% year-over-year revenue decline and a $188 million loss in its most recent quarterly results.
- CEO Kent Masters has called on Western governments to act to weaken China’s grip on the lithium market.
Albemarle (ALB) was the worst-performing stock in the S&P 500 in intraday trading Monday as the world’s biggest lithium producer continues to feel the negative effects of slumping lithium prices.Â
The price of the metal used in batteries that run electric vehicles (EVs), mobile phones, and more has slumped more than 80% since the start of 2023 as demand for EVs slowed.
In the second quarter, the company reported a $188 million net loss, with revenue sinking nearly 40% year-over-year. It added more cost-cutting measures on top of those it announced in January, and after already offering new stock in March to help raise cash. Â
CEO Has Urged Western Governments To End China’s Lithium Dominance
Chief Executive Officer (CEO) Kent Masters said in a recent Financial Times interview that the company is urging governments to take steps to end China’s dominance in the industry, arguing that action must be taken now if Western nations are going to have their own supply chain for lithium. Masters warned that this is a “very important moment in time.”
Shares of Albemarle fell 7.4% as of 1:45 p.m. ET Monday to $75.64, their lowest level in four years.