Albemarle reported that its Q4 2022 lithium net sales increased $1.7 billion (+410%) to $2.1 billion due to higher pricing net of FX (+328%) related to renegotiated contracts and increased market pricing. Volume was also higher (+82%) related primarily to the La Negra III/IV expansion in Chile and higher tolling volumes to meet growing customer demand.

Adjusted EBITDA of $1.2 billion increased by $1.0 billion as higher pricing and volumes more than offset higher costs.

In December 2022, Albemarle acquired a location in Charlotte, North Carolina, where it plans to invest at least $180 million to establish the Albemarle Technology Park, a facility designed for novel materials research, advanced process development, and acceleration of next-generation lithium products to market.

The State of North Carolina awarded Albemarle a nearly $13 million incentive package to develop the facility, which is expected to create at least 200 jobs.

For stronger focus and better execution on its multiple growth opportunities, Albemarle has realigned two segments in its core portfolio: Albemarle Energy Storage, focused on the lithium-ion battery evolution and the transition to clean energy; and Albemarle Specialties, combining the existing bromine business with the lithium specialties business. The resegmenting was effective 1 January 2023.

Albemarle estimates Energy Storage net sales for 2023 to range between $8.3 to $9.8 billion, with adjusted EBITDA between $3.7 and $4.6 billion. Energy Storage volumes are projected to be up 30-40% in 2023 compared to 2022.

Albemarle expects continued robust EV demand in China, which will continue to drive lithium demand.

Full year realized pricing is expected to be up 55-65% vs. prior year, assuming flat pricing to fourth quarter 2022.