- Albemarle (NYSE:ALB) to invest over US$1 billion into its new lithium hydroxide plant in South Carolina
- The company aims to meet the growing demand for the growing EV battery space
- Albemarle said the facility will produce roughly 50,000 metric tons of battery-gade lithium per year
- The facility will create over 300 new jobs
- Shares of Albemarle (ALB) are down 1.47 per cent to $219.65
Albemarle (ALB) is gearing up to spend a significant amount of money as electric vehicle (EV) battery demand continues to accelerate.
The company said in a statement on Wednesday that it’s planning to invest US$1.3 billion in a lithium hydroxide plant in South Carolina.
Coined as a “Mega-Flex” facility by the company, Albemarle said it expects the facility to produce roughly 50,000 metric tons of battery-grade lithium hydroxide with a potential to increase output by at least double.
Albemarle said its anticipated production should support the manufacturing of 2.4 million EVs prduced per year.
“This facility will help increase the production of U.S.-based lithium resources to fuel the clean energy revolution while bringing us closer to our customers as the supply chain is built out in North America,” said Albemarle CEO Kent Masters.
Once permits have been approved, the facility will be located within a roughly 800-acre parcel. Albemarle anticipates it will also create over 300 jobs, while the project will generate over 1,500 construction jobs.
The company said construction will begin sometime in late 2024.
The growing EV battery market
The global EV battery market was valued at roughly $56 million in 2022 and is anticipated to reach $134.6 by 2027, growing at a compound annual growth rate of 19.9 per cent during the forecast period.
The demand for EVs is accelerating as governments around the world promote adoption of alternative vehicles as the shift away from fossil fuels continues.
Lithium is one of the biggest components of EV batteries, while Albemarle is one of the world’s biggest producers of lithium.
Shares of Albemarle (ALB) are down 1.47 per cent to $219.65
