Albemarle Corporation has announced it is idling the remaining operational train at its Kemerton lithium hydroxide plant in Western Australia, placing it into care and maintenance effective immediately. This follows the 2024 shutdown of Train 2 and the cancellation of expansion plans for Trains 3 and 4.

The Kemerton plant processes spodumene from the Greenbushes mine, one of the world’s premier sources of the lithium-bearing mineral. Albemarle holds a stake and half offtake rights in Greenbushes through an Australian joint venture. Built to support a Western lithium supply chain, Kemerton uses proven technology to produce lithium hydroxide at commercial scale.

“Idling operations at Kemerton was a difficult decision. It follows significant actions we have taken over the past two and a half years to reduce operating costs during an extended period of price volatility in the market,” said Kent Masters, Albemarle Chairman and CEO.

“Unfortunately, recent lithium price improvements alone are not enough to offset the challenges facing Western hard-rock lithium conversion operations. This decision improves our financial flexibility and preserves optionality.”

Albemarle expects the move to boost adjusted EBITDA starting in Q2 2026, with no impact on projected 2026 volumes. The company plans to meet lithium hydroxide demand through other production channels.

The company’s Australian mining interests, including Greenbushes, Wodgina, and other exploration projects, remain unaffected and central to Albemarle’s long-term strategy.