Albemarle Reduces 2030 Demand Forecast for Lithium

Albemarle (NYSE:ALB), the leading lithium producer globally, has revised its 2030 demand projection for the vital battery component in response to the slower-than-anticipated adoption of electric vehicles in the U.S. and Europe.

According to a Financial Times report on Friday, the company now anticipates a global requirement of 3.3 million tonnes of lithium carbon equivalent by 2030, marking a 10% reduction from its prior forecast of 3.7 million tonnes. This adjustment was disclosed in an interview with Eric Norris, Albemarle’s president of lithium.

Notably, Norris cited delayed launches of electric vehicle models by car manufacturers in Western markets as the primary reason for the downward revision. “Some models have been delayed, largely out of North America, which is pushing out the length of time of penetration [of EVs] in the US,” Norris explained, adding that a similar trend is expected in parts of Europe.

These revelations coincide with Albemarle CEO Kent Masters’ comments on Thursday, highlighting the unsustainability of the 80% plunge in lithium prices since last year. Masters emphasized the necessity for a price upsurge to incentivize the essential supply investments required to cater to the long-term demand growth. He specifically pointed out that current prices are jeopardizing lithium projects in the West, emphasizing the need for long-term pricing to meet investment criteria.