Fastmarkets’ Fast Forward podcast The lithium lifeline: navigating the future of energy storage
Aug 27, 2024
Andrea Hotter, a special correspondent at Fastmarkets, explores the critical role of lithium in the energy transition. She discusses the turbulence in lithium pricing and the reliance on China's supply chain for electric vehicle batteries. Joining her is Eric Norris, president of Energy Storage at Albemarle Corporation, who shares insights on the challenges and opportunities in the industry. They delve into the necessity of sustainable practices, the competitive pressures facing Western nations, and the surprising medicinal uses of lithium, showcasing its multifaceted significance.
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Lithium Market Challenges
- Lithium market volatility and lower-than-expected EV adoption have led to falling prices.
- These prices are below marginal cash costs, hindering Western expansion and potentially slowing the energy transition.
Albemarle's Profitability
- Albemarle remains profitable due to its low-cost resource position, particularly in brine and rock.
- However, low lithium salt prices create challenges for achieving acceptable investment returns in chemical conversion.
Navigating Market Volatility
- Companies need to remain agile in the face of market volatility and potential lower-for-longer prices.
- Leverage competitive advantages, like low-cost resources and processing know-how, and be ready to adapt.