Albemarle Receives $90 Million Critical Materials Award from the Department of Defense to Boost U.S. Lithium Production
September 12, 2023
Funding to support restart of company's Kings Mountain, N.C., mine and increase domestic processing of critical materials for the nation's battery supply chain
CHARLOTTE, N.C., Sept. 12, 2023 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, announced today that the U.S. Department of Defense has approved a $90 million grant to help support the expansion of domestic mining and the production of lithium for the nation's battery supply chain.
The funding will be provided by the Office of the Assistant Secretary of Defense for Industrial Base Policy, utilizing Defense Production Act authorities, and will be used to purchase a fleet of mining equipment as part of the company's planned reopening of its lithium mine in Kings Mountain, North Carolina.
The planned Kings Mountain mine contains one of the few known hard rock lithium deposits in the U.S. The site is expected to feed sufficient material for 50 kt LCE of conversion capacity and support the manufacturing initially of approximately 1.2 million electric vehicles annually.
"As one of the only U.S.-based lithium companies to carry out lithium extraction, processing, and novel lithium battery material research in the United States, Albemarle is uniquely positioned to help power the clean energy revolution," said Albemarle's President of Energy Storage, Eric Norris. "Lithium is an essential ingredient in our sustainable energy future. Demand is expected to increase significantly, and it is imperative to secure our nation's supply of this critical resource."
Albemarle estimates that Kings Mountain will become operational as early as late 2026, pending permitting. At Kings Mountain, Albemarle is implementing "IRMA-Ready" standards – an operational playbook for mine sites in exploration phase. Initiative for Responsible Mining Assurance (IRMA) standards emphasize environmental stewardship and community engagement.
Albemarle Corporation (NYSE: ALB) leads the world in transforming essential resources into critical ingredients for mobility, energy, connectivity, and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allow us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at albemarle.com and on Twitter @AlbemarleCorp.
This press release contains statements concerning our expectations, anticipations and beliefs regarding the future, which constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties, often contain words such as "anticipate," "believe," "estimate," "expect," "guidance," "intend," "may," "outlook," "should," "would," and "will". Forward-looking statements may include statements regarding expectations for the timing and amount of funding received under the DPA Investments Program, future demand for lithium, the production capacity and timing of construction of Albemarle's Kings Mountain lithium mine, and all other information relating to matters that are not historical facts. Factors that could cause Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include: changes in economic and business conditions; financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in lithium market pricing; production volume shortfalls; increased competition; changes in the product demand; availability and cost of raw materials and energy; technological change and development; fluctuations in foreign currencies; changes in laws and government regulation; regulatory actions, proceedings, claims or litigation; cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; political unrest; changes in inflation or interest rates; volatility in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; performance of Albemarle's partners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarle files with the SEC, including those described under "Risk Factors" in Albemarle's most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q, which are filed with the SEC and available on the investor section of Albemarle's website (investors.albemarle.com) and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release. Albemarle assumes no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
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