(Reuters) – Lithium producer Albemarle said on Wednesday it will reduce its workforce and cut spending on certain projects this year, as it looks to curb costs.
Shares of the world’s largest lithium producer rose 1.4% premarket to $127.67 after the company said it would reduce its expenditure on contracted services as well as defer spending on two lithium projects.
Spot prices of lithium, used in electric vehicles batteries, declined over 80% in 2023 as growing supply from all major producers outpaced rise in demand from battery users.
Albemarle forecast its 2024 capital expenditure in the range of $1.6 billion to $1.8 billion, down from about $2.1 billion in 2023.
The company said it would record a charge in the first quarter of 2024 associated with severance and related benefit costs, exit and disposal activities, and asset write-downs.
(Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli)
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