Albemarle Announces Idling of Operations at Kemerton Processing Plant

Albemarle Corporation ALB recently announced that it will idle Train 1, the remaining operating train at its Kemerton lithium hydroxide processing plant in Western Australia, and place it into care and maintenance effective immediately. This move follows earlier actions in 2024 to idle Train 2 for care and maintenance and stop expansion plans for Trains 3 and 4.

The Kemerton facility processes spodumene from the Greenbushes mine, one of the world’s best deposits. Albemarle holds an ownership stake and half of the offtake rights from Greenbushes through a joint venture. The Kemerton plant was set up to support the development of a lithium supply chain in Western Australia, leveraging its advanced technology at a commercial scale.

The company’s decision is a result of ongoing efforts over the past two and a half years to reduce operating costs amid periods of price volatility. The improvement in lithium prices has also remained insufficient to offset the challenges facing Western hard-rock lithium conversion operations.

The company expects higher flexibility and optionality to benefit adjusted EBITDA starting in the second quarter of 2026. No impact is expected on projected 2026 sales volumes. Albemarle’s Australian mining interests, including its stakes in Greenbushes and Wodgina, as well as regional exploration assets, will also remain unaffected as they are central to the company’s strategy.

ALB stock has gained 104.8% over the past year compared with the industry’s 13.3% decline.

ALB’s Zacks Rank & Other Key Picks

ALB currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space are Coeur Mining, Inc. CDE, Fortuna Mining Corp. FSM and Avino Silver & Gold Mines Ltd. ASM.

While CDE and FSM sport a Zacks Rank #1 each at present, ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CDE’s 2025 earnings is pegged at 91 cents per share, indicating a rise of 405.56% year over year. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the remaining two, with an average surprise of 106.61%. CDE’s shares have soared 239.2% over the past year.

The Zacks Consensus Estimate for FSM’s 2025 earnings is pinned at 73 cents per share, indicating a 58.7% year-over-year increase. Its shares have surged 114.6% over the past year.

The Zacks Consensus Estimate for ASM’s 2025 earnings is pinned at 17 cents per share, indicating a 13.33% year-over-year increase. ASM’s shares have skyrocketed 614.6% over the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research