Albemarle Corporation, a global leader in providing essential elements for mobility, energy, connectivity, and health, has agreed to amend the terms of the transaction signed earlier this year with Mineral Resources Limited.

The amended agreements are intended to further simplify commercial arrangements entered into by the parties in February of this year. Pending regulatory approvals, the amended arrangements are intended to provide greater strategic opportunities for each company based on their global operations and the evolving lithium market.

Under the new agreements, Albemarle will take 100% ownership of the Kemerton lithium hydroxide processing facility in Australia that is currently jointly owned with Mineral Resources through the MARBL joint venture. Albemarle will also retain full ownership of its Qinzhou and Meishan lithium processing facilities in China.

Other key aspects of the February 2023 agreement remain in effect, including the April 1, 2022, economic effective date (EED) and joint ownership of the Wodgina mine, with Albemarle and Mineral Resources to each own a 50% share upon closing and Mineral Resources serving as the operator.

Albemarle CEO Kent Masters said the agreement positions each company to better align its planned capital investments and assets.

“Albemarle continues to rapidly expand its Energy Storage business. Construction of the Meishan lithium hydroxide processing plant is progressing well, with completion now expected in early 2024. We also recently announced an expansion at the Kemerton lithium hydroxide processing facility, with construction about to begin for our 100% owned processing trains three and four.”

Upon closing, Albemarle expects to pay Mineral Resources US$380 - 400 million which includes net consideration for the remaining 15% ownership of Kemerton as well as EED settlement adjustments. Actual settlement adjustments will depend on the date of close.

The parties anticipate closing the amended arrangements later this year, pending regulatory approval in Australia.