Albemarle Corp operates in lithium mining, bromine specialties, and catalysts extraction. It supplies lithium to electric vehicle battery producers like Tesla and Ford. Revenues increased from $3.4 billion in 2018 to $9.7 billion in 2022 as demand for lithium batteries grew. However, profits fluctuated due to changes in raw material prices, currency exchange rates, and taxes. Future growth depends on continued EV adoption, but risks include the development of alternative battery technologies and volatility in input costs.
Albemarle Corp operates in lithium mining, bromine specialties, and catalysts extraction. It supplies lithium to electric vehicle battery producers like Tesla and Ford. Revenues increased from $3.4 billion in 2018 to $9.7 billion in 2022 as demand for lithium batteries grew. However, profits fluctuated due to changes in raw material prices, currency exchange rates, and taxes. Future growth depends on continued EV adoption, but risks include the development of alternative battery technologies and volatility in input costs.
Albemarle Corp operates in lithium mining, bromine specialties, and catalysts extraction. It supplies lithium to electric vehicle battery producers like Tesla and Ford. Revenues increased from $3.4 billion in 2018 to $9.7 billion in 2022 as demand for lithium batteries grew. However, profits fluctuated due to changes in raw material prices, currency exchange rates, and taxes. Future growth depends on continued EV adoption, but risks include the development of alternative battery technologies and volatility in input costs.
Albemarle Corp operates in lithium mining, bromine specialties, and catalysts extraction. It supplies lithium to electric vehicle battery producers like Tesla and Ford. Revenues increased from $3.4 billion in 2018 to $9.7 billion in 2022 as demand for lithium batteries grew. However, profits fluctuated due to changes in raw material prices, currency exchange rates, and taxes. Future growth depends on continued EV adoption, but risks include the development of alternative battery technologies and volatility in input costs.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1of 3
Albemarle Corp (NYSE: ALB)
Business Overview: [High-level overview]
Products / Services: Operates in 3 divisions: lithium mining (68.4% of 2022 revenues), bromine specialties (19.3% of 2022 revenues) and catalysts extraction (12.3% of 2022 revenues). Customer Base: Lithium based batteries producers (mainly Tesla, Ford, LG Energy solutions), operating worldwide as well. End-Markets: EV battery producers, accounting for more than 85% of lithium contracts, fire safety products, accounting for most bromine contracts and bromine catalysts, sold to chemical businesses, the major contract being M. R. Grace and Co. Operating Geography: Major extracting operations countries locates in Australia, Chile (70% of world lithium supply), China, Jordan and the U.S. Contracts worldwide with EV/Lithium based batteries producers in over 70 countries.
Deal Merits: What catalyst or key initiatives by management will drive revenues or earnings to be higher than what the market expects? - Growth in demand for EV batteries shown through increase in EV sales YoY. - Agreement with Ford to supply lithium from 2026 to 2030. - Strong 2022 Sustainability Report with water usage, emissions, DE&I. - Reduction in Lithium prices. - Includes expansions at Silver Peak, La Negra, Kemerton, Qinzhou, and Meishan.
Deal Risks: Related to Business: o Development of non-lithium battery technologies o Change in raw materials prices Related to Financial: o Exposed to fluctuations in currency exchange rates, which may adversely affect the company's operating results and net income. o Will need a significant amount of cash to service the company's indebtedness and ability to generate cash depends on many factors beyond control o Changes in, or the interpretation of, tax legislation or rates throughout the world could materially impact the company's results.
