Albemarle (ALB.US), the world's largest lithium producer, reported a quarterly loss that exceeded expectations on Wednesday and announced it would idle a major processing plant in Australia due to persistently weak battery metal prices. The company posted fourth-quarter revenue of $1.43 billion, up 16.3% year-over-year and $80 million above estimates. However, it recorded a net loss of $455.9 million, or $3.87 per share, compared to a net profit of $33.6 million, or 29 cents per share, in the same period last year.

Over the past two years, lithium prices have plunged more than 90%, partly due to oversupply from China, leading Albemarle and its peers to cut jobs, defer projects, and in some cases be acquired. Although prices have recovered somewhat in recent months, they remain far below the record highs seen in 2023.

Albemarle stated that after shutting down one production line last year at its Kemerton processing plant in Western Australia, it will now idle the plant's last active processing line. The company has also canceled plans to add two new production lines. CEO Kent Masters commented, "Unfortunately, the recent recovery in lithium pricing is not enough to offset the challenges facing our hard-rock lithium conversion operations in Western Australia."

The Kemerton plant processes spodumene, a hard-rock lithium-bearing material, sourced from the Greenbushes mine. Greenbushes, the world's largest lithium mine, is jointly owned by Albemarle and China's Tianqi Lithium. Excluding one-time items, such as costs related to the pending sale of its Ketjen refinery catalyst business, Albemarle reported a loss of 53 cents per share, wider than the 41-cent loss anticipated by analysts.

Despite continued price weakness, Albemarle reported a 23% increase in sales volume for its lithium products. The company forecast fiscal year 2026 revenue of $6 billion and projected adjusted earnings per share of $2.61.