According to the company’s website press release on October 19, 2022, Albemarle Corporation (NYSE: ALB), a global leader in the specialty chemicals industry, announced it has been awarded a nearly $150 million grant from the U.S. Department of Energy (DOE) as part of the first set of projects funded by the President's Bipartisan Infrastructure Law to expand domestic manufacturing of batteries for electric vehicles (EVs) and the electrical grid and for materials and components currently imported from other countries. The grant funding is intended to support a portion of the anticipated cost to construct a new, commercial-scale U.S.-based lithium concentrator facility at Albemarle's Kings Mountain, North Carolina, location.
Albemarle CEO Kent Masters will participate in today's virtual White House event as part of the DOE award recipient announcement, reiterating Albemarle's commitment to invest in the U.S. to source and process the critical materials used to make lithium-ion batteries.
"Albemarle is proud to partner with the federal government to bring manufacturing jobs to the southeastern United States, strengthening the domestic supply chain for the growing electric vehicle market. Receiving the DOE grant affirms Albemarle's position as a global market leader and one of the only lithium companies currently producing battery-grade lithium from U.S. resources," said Masters. "Expanding our U.S. footprint also increases the speed of lithium processing and reduces greenhouse gas emissions from long-distance transportation of raw minerals. We hope this project spurs additional investment by others in the domestic EV battery supply chain, such as cathode manufacturers, battery makers, and auto manufacturers."
Albemarle expects the concentrator facility to create hundreds of construction and full-time jobs, and to supply up to 350,000 metric tons per year of spodumene concentrate to the company's previously announced mega-flex lithium conversion facility. The mega-flex conversion facility is expected to eventually produce up to 100,000 metric tons of battery-grade lithium per year to support domestic manufacturing of up to 1.6 million EVs per year. Albemarle is finalizing the site selection for the mega-flex conversion facility in the southeastern United States. That facility design would accommodate multiple feedstocks, including spodumene from the proposed reopening of the company's hard rock mine in Kings Mountain; its existing lithium brine resources in Silver Peak, Nevada, and other global resources; as well as potential recycled lithium materials from existing batteries.
In addition to supporting the development of the concentrator, Albemarle will use a portion of the grant to support a $5 million mineral processing operator training program at Cleveland Community College, a $1.5 million minerals lab research program at Virginia Tech, and a $1.5 million minerals pilot plant and engineering training program at North Carolina State University's Asheville Minerals Research Lab.
Development of both the lithium concentrator and the mega-flex conversion facility, the proposed reopening of the Kings Mountain mine, and an active expansion of the Silver Peak facility are part of a larger Albemarle strategy to invest in the U.S. EV battery supply chain.
About Albemarle Corporation
Albemarle Corporation (NYSE: ALB) is a global specialty chemicals company with leading positions in lithium, bromine and catalysts. We think beyond business as usual to power the potential of companies in many of the world's largest and most critical industries, such as energy, electronics, and transportation. We actively pursue a sustainable approach to managing our diverse global footprint of world-class resources. In conjunction with our highly experienced and talented global teams, our deep-seated values, and our collaborative customer relationships, we create value-added and performance-based solutions that enable a safer and more sustainable future.
We regularly post information to www.albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, SEC filings and other information regarding our company, our businesses and the markets we serve.
Forward-Looking Statements
Some of the information presented in this press release, including, without limitation, information related to the timing and transition to, and the benefits of, receipt of funds from the DOE grant, the expected costs, specifications and production capabilities of the planned Kings Mountain concentrator facility and the mega-flex conversion facility, and the number of jobs and educational programs created by Albemarle's facilities and grants, and including all information relating to matters that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from the views expressed. Factors that could cause Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include, without limitation: changes to or delays in the application of the Bipartisan Infrastructure Law and funds authorized thereunder due to political disagreement, legislative processes or other factors; changes in economic and business conditions; changes in financial and operating performance of its major customers and industries and markets served by it; the timing of orders received from customers; the gain or loss of significant customers; fluctuations in lithium market pricing, which could impact our revenues and profitability particularly due to our increased exposure to index-referenced and variable-priced contracts for battery grade lithium sales; changes with respect to contract renegotiations; potential production volume shortfalls; competition from other manufacturers; changes in the demand for its products or the end-user markets in which its products are sold; limitations or prohibitions on the manufacture and sale of its products; availability of raw materials; increases in the cost of raw materials and energy, and its ability to pass through such increases to its customers; technological change and development, changes in its markets in general; fluctuations in foreign currencies; changes in laws and government regulation impacting its operations or its products; the occurrence of regulatory actions, proceedings, claims or litigation (including with respect to the U.S. Foreign Corrupt Practices Act and foreign anti-corruption laws); the occurrence of cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; the effect of climate change, including any regulatory changes to which it might be subject; hazards associated with chemicals manufacturing; the inability to maintain current levels of insurance, including product or premises liability insurance, or the denial of such coverage; political unrest affecting the global economy, including adverse effects from terrorism or hostilities; political instability affecting our manufacturing operations or joint ventures; changes in accounting standards; the inability to achieve results from its global manufacturing cost reduction initiatives as well as its ongoing continuous improvement and rationalization programs; changes in the jurisdictional mix of its earnings and changes in tax laws and rates or interpretation; changes in monetary policies, inflation or interest rates that may impact its ability to raise capital or increase its cost of funds, impact the performance of its pension fund investments and increase its pension expense and funding obligations; volatility and uncertainties in the debt and equity markets; technology or intellectual property infringement, including cyber-security breaches, and other innovation risks; decisions it may make in the future; future acquisition and divestiture transactions, including the ability to successfully execute, operate and integrate acquisitions and divestitures and incurring additional indebtedness; continuing uncertainties as to the duration and impact of the coronavirus (COVID-19) pandemic; performance of Albemarle's partners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarle files with the SEC, including those described under "Risk Factors" in Albemarle's most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this press release. Albemarle assumes no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
