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Oilfield & Energies



Albemarle announces completion of lithium JV with Mineral Resources


7th November 2019

Albemarle Corporation, a leader in the global specialty chemicals industry, has closed its transaction with Mineral Resources. The 60/40 joint venture between Albemarle and Mineral Resources, respectively, is named MARBL Lithium Joint Venture.

Under the Agreement, Albemarle has acquired a 60% interest in Mineral Resources's Wodgina spodumene mine in Western Australia for US$1.3 billion, consisting of a cash payment of US$820 million, and the transfer to Mineral Resources of a 40% interest in two 25 ktpa lithium hydroxide conversion trains being built by Albemarle at Kemerton in Western Australia. MARBL will manage the operation of the Wodgina mine and the Kemerton conversion trains. Albemarle will market 100% of the output from the Wodgina mine and Kemerton lithium hydroxide conversion trains.

The 50 ktpa lithium hydroxide conversion capacity at Kemerton is currently scheduled to be commissioned in stages starting in the first half of 2021. The timing and location of any further lithium hydroxide conversion capacity that may be developed by the joint venture will be based on market demand and will be funded 60/40 by Albemarle and MRL.

Based on current market conditions, the Wodgina mine will idle production of spodumene until market demand supports bringing the mine back into production.

"We are pleased to announce the formation of this joint venture with Mineral Resources. Over the past year, we have worked closely together and are even more confident that our investment will produce substantial, long-term value," said Luke Kissam, Albemarle CEO. "In the short term, we have made the prudent decision to idle mine activity until market conditions improve, but we are well positioned for future growth given the high-quality Wodgina resource and the combined operating expertise of both companies."

The transaction was funded by borrowing of approximately US$900 million under an unsecured credit facility.