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What changed in Albemarle Corporation's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Albemarle Corporation's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+611 added−548 removedSource: 10-K (2024-02-15) vs 10-K (2023-02-15)

Top changes in Albemarle Corporation's 2023 10-K

611 paragraphs added · 548 removed · 433 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeIn 2022, we improved our Occupational Safety and Health Act (“OSHA”) occupational injury and illness incident rate to 0.14 for our employees and nested contractors, compared to 0.19 in 2021. In addition, we provide all employees and their dependents with access to our Employee Assistance Program which provides free mental and behavioral health resources.
Biggest changeWe also include health and safety metrics in our annual incentive plan for all employees to incentivize our commitment to safety. In 2023, we maintained our Occupational Safety and Health Act (“OSHA”) occupational injury and illness incident rate of 0.14 for our employees and nested contractors, the same as in 2022.
In addition, through our research and development programs, we strive to differentiate our business by developing value-added products and products based on proprietary technologies. Our major competitors in the CFT catalysts market include Shell Catalysts & Technologies, Advanced Refining Technologies and Haldor Topsoe. Our major competitors in the FCC catalysts market include W.R.
In addition, through our research and development programs, we strive to differentiate our business by developing value-added products based on proprietary technologies. Our major competitors in the CFT catalysts market include Shell Catalysts & Technologies, Advanced Refining Technologies and Haldor Topsoe. Our major competitors in the FCC catalysts market include W.R.
As water is a scarce resource, we understand the need to responsibly manage our water consumption not only for the preservation of the environment, but for the viability of our local communities. We are investing in new process technologies to reduce our water footprint and expand capacity sustainably in locations with high water risk.
As water is a scarce resource, we understand the need to responsibly manage our water consumption not only for the preservation of the environment, but also for the viability of our local communities. We are investing in new process technologies to reduce our water footprint and expand capacity sustainably in locations with high water risk.
Raw Materials and Significant Supply Contracts The major raw materials we use in our Catalysts operations include sodium silicate, sodium aluminate, kaolin, aluminum, ethylene, alpha-olefins, isobutylene, toluene and metals, such as lanthanum, molybdenum, nickel and cobalt, most of which are readily available from numerous independent suppliers and are purchased or provided under contracts at prices we believe are competitive.
Raw Materials and Significant Supply Contracts The major raw materials we use in our Ketjen operations include sodium silicate, sodium aluminate, kaolin, aluminum, ethylene, alpha-olefins, isobutylene, toluene and metals, such as lanthanum, molybdenum, nickel and cobalt, most of which are readily available from numerous independent suppliers and are purchased or provided under contracts at prices we believe are competitive.
We and our joint ventures currently operate more than 25 production and research and development (“R&D”) facilities, as well as a number of administrative and sales offices, around the world. As of December 31, 2022, we served approximately 1,900 customers in approximately 70 countries.
We and our joint ventures currently operate more than 25 production and research and development (“R&D”) facilities, as well as a number of administrative and sales offices, around the world. As of December 31, 2023, we served approximately 1,900 customers in approximately 70 countries.
We are subject to such laws, including the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as CERCLA or Superfund, in the U.S., and similar foreign and state laws. We may have liability as a potentially responsible party (“PRP”) with respect to active off-site locations under CERCLA or state equivalents.
We are subject to such laws, including the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as CERCLA or Superfund, in the U.S., and similar foreign and state laws. We may have 7 Albemarle Corporation and Subsidiaries liability as a potentially responsible party (“PRP”) with respect to active off-site locations under CERCLA or state equivalents.
Catalysts Segment Our three main product lines in this segment are (i) Clean Fuels Technologies (“CFT”), which is primarily composed of hydroprocessing catalysts (“HPC”) together with isomerization and akylation catalysts; (ii) fluidized catalytic cracking (“FCC”) 4 Albemarle Corporation and Subsidiaries catalysts and additives; and (iii) performance catalyst solutions (“PCS”), which is primarily composed of organometallics and curatives.
Ketjen Segment Our three main product lines in this segment are (i) Clean Fuels Technologies (“CFT”), which is primarily composed of hydroprocessing catalysts (“HPC”) together with isomerization and akylation catalysts; (ii) fluidized catalytic cracking (“FCC”) catalysts and additives; and (iii) performance catalyst solutions (“PCS”), which is primarily composed of organometallics and curatives.
Research and Development We believe that in order to generate revenue growth, maintain our margins and remain competitive, we must continually invest in research and development, product and process improvements and specialized customer services. Our research and 6 Albemarle Corporation and Subsidiaries development efforts support each of our business segments.
Research and Development We believe that in order to generate revenue growth, maintain our margins and remain competitive, we must continually invest in research and development, product and process improvements and specialized customer services. Our research and development efforts support each of our business segments.
We devote significant resources and have developed and implemented comprehensive programs to promote the health and safety of our employees, and we maintain an active health, safety and environmental program. As noted above, we finished 2022 with an OSHA occupational injury and illness incident rate of 0.14 for Albemarle employees and nested contractors, compared to 0.19 in 2021.
We devote significant resources and have developed and implemented comprehensive programs to promote the health and safety of our employees, and we maintain an active health, safety and environmental program. We finished 2023 with an OSHA occupational injury and illness incident rate of 0.14 for Albemarle employees and nested contractors, compared to 0.14 in 2022.
Our Corporate Governance Guidelines, Code of Conduct and the charters of the Audit and Finance, Health, Safety and Environment, Executive Compensation, and Nominating and Governance Committees of our Board of Directors are also available on our website and are available in print to any shareholder upon request by writing to Investor Relations, 4250 Congress Street, Suite 900, Charlotte, North Carolina 28209, or by calling (980) 299-5700.
Our Corporate Governance Guidelines, Code of Conduct and the charters of the Audit and Finance, Capital Investment, Sustainability, Safety and Public Policy, Executive Compensation and Talent Development, and Nominating and Governance Committees of our Board of Directors are also available on our website and are available in print to any shareholder upon request by writing to Investor Relations, 4250 Congress Street, Suite 900, Charlotte, North Carolina 28209, or by calling (980) 299-5700.
Major competitors in lithium compounds include Sociedad Quimica y Minera de Chile S.A., Sichuan Tianqi Lithium, Jiangxi Ganfeng Lithium, Rio Tinto plc, Pilbara Minerals, Allkem, Tesla, Chengxin Lithium, Ruifu Lithium, Livent Corporation and a large number of additional Chinese companies.
Major competitors in lithium compounds include Sociedad Quimica y Minera de Chile S.A., Sichuan Tianqi Lithium, Jiangxi Ganfeng Lithium, Rio Tinto plc, Pilbara Minerals, Arcadium Lithium, Tesla and a large number of additional Chinese companies.
Product performance and quality, price and contract terms, product and process improvements, specialized customer services, the ability to attract and retain skilled personnel, and the maintenance of a good safety record are the primary factors to compete effectively in the catalysts marketplace.
Competition in these markets is driven by a variety of factors. Product performance and quality, price and contract terms, product and process improvements, specialized customer services, the ability to attract and retain skilled personnel, and the maintenance of a good safety record are the primary factors to compete effectively in the catalysts marketplace.
As of December 31, 2022, we owned more than 2,100 active patents and more than 500 pending patent applications in key strategic markets worldwide. We also have acquired rights under patents and inventions of others through licenses, and we license certain patents and inventions to third parties.
As of December 31, 2023, we owned more than 1,600 active patents and more than 550 pending patent applications in key 6 Albemarle Corporation and Subsidiaries strategic markets worldwide. We also have acquired rights under patents and inventions of others through licenses, and we license certain patents and inventions to third parties.
Our most significant competitors are Lanxess AG, Israel Chemicals Ltd, as well as producers in India and China. Raw Materials and Significant Supply Contracts The bromine we use is originally sourced from two locations: Arkansas and the Dead Sea. Our bromine production operations in Arkansas are supported by an active brine rights leasing program.
Raw Materials and Significant Supply Contracts The bromine we use is originally sourced from two locations: Arkansas and the Dead Sea. Our bromine production operations in Arkansas are supported by an active brine rights leasing program.
It is characterized by aggressive expansion and entry from existing and new players, including automotive OEMs, junior miners, and large well capitalized diversified miners. Producers are primarily located in the Americas, Asia and Australia.
Competition The global lithium market is highly competitive and growing very rapidly. It is characterized by aggressive expansion and entry from existing and new players, including automotive OEMs, commodity traders, junior miners, and large, well-capitalized diversified miners. Producers are primarily located in the Americas, Africa, Asia and Australia.
We expect to continue to see some less profitable, typically smaller, refineries shutting down and, over the long-term, being replaced by larger scale and more complex refineries, with growth concentrated in the Middle East and Asia.
We expect to continue to see some less profitable, typically smaller, refineries shutting down and, over the long-term, being replaced by larger scale and more complex refineries, with growth concentrated in the Middle East and Asia. Oil refinery utilization continues to return to more typical rates after low refinery utilization during the COVID pandemic periods.
For financial information regarding our reportable segments and geographic area information, see Note 25, “Segment and Geographic Area Information,” to our consolidated financial statements included in Part II, Item 8 of this report.
Financial results and discussion about our segments included in this report are organized according to these categories except where noted. For financial information regarding our reportable segments and geographic area information, see Note 25, “Segment and Geographic Area Information,” to our consolidated financial statements included in Part II, Item 8 of this report.
As of December 31, 2022, we had approximately 7,400 employees, including employees of our consolidated joint ventures, of whom 3,100, or 42%, are employed in the U.S. and the Americas; 2,300, or 31%, are employed in Asia Pacific; 1,500, or 20%, are employed in Europe; and 500, or 7%, are employed in the Middle East or other areas.
As of December 31, 2023, we had approximately 9,000 employees, including employees of our consolidated joint ventures, of whom 3,700, or 41%, are employed in the U.S. and the Americas; 3,300, or 36%, are employed in Asia Pacific; 1,500, or 17%, are employed in Europe; and 500, or 6%, are employed in the Middle East or other areas.
Lithium is a key component in products and processes used in a variety of applications and industries, which include lithium batteries used in consumer electronics and electric vehicles, high performance greases, thermoplastic elastomers for car tires, rubber soles and plastic bottles, catalysts for chemical reactions, organic synthesis processes in the areas of steroid chemistry and vitamins, various life science applications, as well as intermediates in the pharmaceutical industry, among other applications.
Lithium is a key component in products and processes used in a variety of applications and industries, which include lithium batteries used in consumer electronics and electric vehicles, power grids and solar panels, high performance greases, specialty glass used in consumer appliances and electronics, organic synthesis processes in the areas of steroid chemistry and vitamins, various life science applications, as well as intermediates in the pharmaceutical industry, among other applications.
In August 2022, we announced plans to realign our Lithium and Bromine global business units into a new corporate structure designed to better meet customer needs and foster talent required to deliver in a competitive global environment. In addition, we announced our decision to retain our Catalysts business under a separate, wholly-owned subsidiary.
Business Segments Effective January 1, 2023, the Company realigned its Lithium and Bromine global business units into a new corporate structure designed to better meet customer needs and foster talent required to deliver in a competitive global environment. In addition, the Company announced its decision to retain its Catalysts business under a separate, wholly-owned subsidiary renamed Ketjen.
In addition, we incur substantial capital and operating costs in our efforts to comply with them. 7 Albemarle Corporation and Subsidiaries We use and generate hazardous substances and wastes in our operations and may become subject to claims for personal injury and/or property damage relating to the release of such substances into the environment.
We use and generate hazardous substances and wastes in our operations and may become subject to claims for personal injury and/or property damage relating to the release of such substances into the environment.
In addition to potential business opportunities, we acknowledge our responsibility to address the impact of our operations on the environment. We are investing in technology and people to reduce energy consumption, greenhouse gas emissions and air emissions of ozone-depleting substances.
In addition to potential business opportunities, we acknowledge our responsibility to address the impact of our operations on the environment. We are investing in technology and people to reduce energy consumption, greenhouse gas emissions and air emissions. Albemarle supports the goals of the Paris Agreement to avoid climate change by limiting global warming.
Our FCC additives are used to reduce emissions of sulfur dioxide and nitrogen oxide in FCC units and to increase liquefied petroleum gas olefins yield, such as propylene, and to boost octane in gasoline. Albemarle offers unique refinery catalysts to crack and treat the lightest to the heaviest feedstocks while meeting refinery yield and product needs.
Our FCC additives are used to reduce emissions of sulfur dioxide and nitrogen oxide in FCC units and to increase liquefied petroleum gas olefins yield, such as propylene, and to boost octane in gasoline.
We also perform an annual review of our pay practices by gender, and in the U.S. by gender and race, to ensure that they are fair and equitable, and not influenced by biased opinions or discrimination.
We believe employees should be compensated through wages and benefits, based on experience, expertise, performance, and the criticality of their roles in the Company. We also perform an annual review of our pay practices by gender, and in the U.S. by gender and race, to ensure that they are fair and equitable, and not influenced by biased opinions or discrimination.
For information regarding our unconsolidated joint ventures see Note 10, “Investments,” to our consolidated financial statements included in Part II, Item 8 of this report. Business Segments During 2022, we managed and reported our operations under three reportable segments: Lithium, Bromine and Catalysts.
For information regarding our unconsolidated joint ventures, see Note 10, “Investments,” to our consolidated financial statements included in Part II, Item 8 of this report.
In 2021, we established greenhouse gas emission targets for each of our businesses, including achieving net zero carbon emissions by 2050, reducing the carbon-intensity of our Bromine and Catalysts businesses by a combined 35% by 2030, and growing our Lithium business in a carbon-intensity neutral manner through 2030. Water is a critical input to Albemarle’s production operations.
Our ambition is to achieve net-zero carbon emissions by 2050. We have established greenhouse gas emission targets for each of our businesses, including reducing the scope 1 and 2 carbon-intensity of our Specialties and Ketjen businesses by 35% by 2030, and growing our Energy Storage business in a carbon-intensity neutral manner through 2030.
We want to ensure that our workplace reflects the communities in which we live and work. Our recruiting policy includes a requirement that we include individuals from gender or racial minority groups among those we interview for openings at the manager level and above.
Our recruiting policy includes a requirement that we include individuals from gender or racial minority groups among those we interview for openings at the manager level and above. We seek to provide employees with a desirable workplace that will enable us to attract and retain top talent.
Approximately 30% of 5 Albemarle Corporation and Subsidiaries these employees are represented by unions or works councils. We believe that we generally have a good relationship with our employees, and with those unions and works councils.
Approximately 26% of these employees are represented by unions or works councils. We believe that we generally have a good relationship with our employees, and with those unions and works councils. Health and Safety The health and safety of our employees is a part of our core values at Albemarle and is integral to how we conduct business.
As a result of this divestiture, the Company recorded a gain of $7.2 million in Other income (expenses), net during the year ended December 31, 2020. These transactions reflect our commitment to investing in future growth of our high priority businesses, maintaining leverage flexibility and returning capital to our shareholders. Available Information Our website address is www.albemarle.com .
These transactions reflect our commitment to investing in future growth of our high priority businesses, maintaining leverage flexibility and returning capital to our shareholders. Available Information Our website address is www.albemarle.com .
Ltd., a company incorporated in Australia (“Talison”) that owns the Greenbushes mine, and from our 60%-owned unincorporated joint venture, MARBL Lithium Joint Venture (“MARBL”) in Western Australia, which owns the Wodgina hard rock lithium mine project (the “Wodgina Project”).
Ltd., a company incorporated in Australia 3 Albemarle Corporation and Subsidiaries (“Talison”) that owns the Greenbushes mine, and from our 50%-owned unincorporated joint venture, MARBL Lithium Joint Venture (“MARBL”) in Western Australia, which owns the Wodgina hard rock lithium mine project (“Wodgina”); and (b) through solar evaporation of our ponds at the Salar de Atacama, in Chile, and in Silver Peak, Nevada.
These acquisitions and joint ventures have expanded our base business, provided our customers with a wider array of products and presented new alternatives for discovery through additional chemistries. In addition, we have pursued opportunities to divest businesses which do not fit our high priority business growth profile.
Recent Acquisitions, Joint Ventures and Divestitures During recent years, we have devoted resources to acquisitions and joint ventures, including the subsequent integration of acquired businesses. These acquisitions and joint ventures have expanded our base business, provided our customers with a wider array of products and presented new alternatives for discovery through additional chemistries.
We estimate that there are currently approximately 600 FCC units being operated globally, each of which requires a constant supply of FCC catalysts. In addition, we estimate that there are approximately 4,000 HPC units being operated globally, each of which typically requires replacement HPC catalysts once every one to four years.
In addition, we estimate that there are approximately 4,000 HPC units being operated globally, each of which typically requires replacement HPC catalysts once every one to four years. Competition Our Ketjen segment serves the global market including the Americas, Asia, Europe and the Middle East, each of which is highly competitive.
Competition in the global lithium market is increasingly based on index-based market pricing and differentiated via product quality, product diversity, reliability of supply and customer service.
Competition in the global lithium market is increasingly based on index-based market pricing and differentiated via product quality, product diversity, reliability of supply and customer service. Raw Materials and Significant Supply Contracts We obtain lithium: (a) by purchasing lithium concentrate from our 49%-owned joint venture, Windfield Holdings Pty. Ltd.
Health and Safety The health and safety of our employees is a part of our core values at Albemarle and is integral to how we conduct business. Our employees, contractors, and visitors follow a comprehensive set of written health and safety policies and procedures at both the corporate and local site levels.
Our employees, contractors, and visitors follow a comprehensive set of written health and safety policies and procedures at both the corporate and local site levels. We routinely audit ourselves against our policies, procedures and standards, using internal and third-party resources.
Each segment has a dedicated team of sales, research and development, process engineering, manufacturing and sourcing, and business strategy personnel and has full accountability for improving execution through greater asset efficiency, market focus, agility and responsiveness. Financial results and discussion about our segments included in this report are organized according to these categories except where noted.
During 2023, we managed and reported our operations under three reportable segments: Energy Storage, Specialties and Ketjen. Each segment has a dedicated team of sales, research and development, process engineering, manufacturing and sourcing, and business strategy personnel and has full accountability for improving execution through greater asset efficiency, market focus, agility and responsiveness.
Bromine Segment Our bromine and bromine-based business includes products used in fire safety solutions and other specialty chemicals applications. Our fire safety technology enables the use of plastics in high performance, high heat applications by enhancing the flame resistant properties of these materials.
We enable digital innovation focused on safety and reliability, including fire safety compounds. Our fire safety technology enables the use of plastics in high performance, high heat applications by enhancing the flame resistant properties of these materials.
Diversity, Equity and Inclusion In 2020, we hired a Vice President, Diversity and Inclusion, to accelerate our inclusion and diversity initiatives and deliver meaningful change in our global organization. A primary focus in our recruiting efforts is to drive greater diversity in our workforce, including higher representation in the professional and managerial job categories.
A primary focus in our recruiting efforts is to drive greater diversity in our workforce, including higher representation in the professional and managerial job categories. We want to ensure that our workplace reflects the communities in which we live and work.
On June 1, 2021, we completed the sale of our fine chemistry services (“FCS”) business to W. R. Grace & Co. (“Grace”) for proceeds of approximately $570 million, consisting of $300 million in cash and the issuance to Albemarle of preferred equity of a Grace subsidiary having an aggregate stated value of $270 million.
(“Grace”) for proceeds of approximately $570 million, consisting of $300 million in cash and the issuance to Albemarle of preferred equity of a Grace subsidiary having an aggregate stated value of $270 million. As part of the transaction, Grace acquired our manufacturing facilities located in South Haven, Michigan and Tyrone, Pennsylvania.
We also offer our customers recycling services for lithium-containing by-products resulting from synthesis with organolithium products, lithium metal and other reagents.
In addition to developing and supplying lithium compounds, we provide technical services, including the handling and use of reactive lithium products. We also offer our customers recycling services for lithium-containing by-products resulting from synthesis with organolithium products, lithium metal and other reagents. We plan to continue to focus on the development of new products and applications.
Product performance and quality, price and contract terms are the primary factors in determining which qualified supplier is awarded a contract. Research and development, product and process improvements, specialized customer services, the ability to attract and retain skilled personnel and maintenance of a good safety record have also been important factors to compete effectively in the marketplace.
R&D, product and process improvements, specialized customer services, the ability to attract and retain skilled personnel and maintenance of a good safety record have also been important factors to compete effectively in the marketplace. Our most significant competitors are Lanxess AG and Israel Chemicals Ltd, as well as producers in India and China.
Within our PCS product line, we manufacture organometallic co-catalysts (e.g., aluminum, magnesium and zinc alkyls) used in the manufacture of alpha-olefins (e.g., hexene, octene, decene), polyolefins (e.g., polyethylene and polypropylene) and electronics. Our curatives include a range of curing agents used in polyurethanes, epoxies and other engineered resins. There were more than 700 refineries world-wide as of December 31, 2022.
Our curatives include a range of curing agents used in polyurethanes, epoxies and other engineered resins. There were more than 700 refineries world-wide as of December 31, 2023.
Key aspects of our operations are subject to these laws and regulations.
Key aspects of our operations are subject to these laws and regulations. In addition, we incur substantial capital and operating costs in our efforts to comply with them.
We attempt to maximize the recovery of our extracted minerals and recycle or reuse by-products where possible.
We attempt to maximize the recovery of our extracted minerals and recycle or reuse by-products where possible. In addition, we work with local communities, regulatory agencies and wildlife organizations to preserve and restore land and biodiversity before, during and after all operations commence.
Competition Our Catalysts segment serves the global market including the Americas, Asia, Europe and the Middle East, each of which is highly competitive. Competition in these markets is driven by a variety of factors.
Competition Our Specialties business serves markets in the Americas, Asia, Europe and the Middle East, each of which is highly competitive. Product performance and quality, price and contract terms are the primary factors in determining which qualified supplier is awarded a contract.
End market products that benefit from our fire safety technology include plastic enclosures for consumer electronics, printed circuit boards, wire and cable products, electrical connectors, textiles and foam insulation. Our bromine-based business also includes specialty chemicals products such as elemental bromine, alkyl bromides, inorganic bromides, brominated powdered activated carbon and a number of bromine fine chemicals.
End market products that benefit from our fire safety technology include plastic enclosures for consumer electronics, printed circuit boards, wire and cable products, electrical connectors, textiles and foam insulation. In energy, infrastructure for renewable grid and electrified transport is enabled by our fire safety solutions.
The following is a summary of our significant acquisitions, joint ventures and divestitures over the last three years. On October 25, 2022 the Company completed the acquisition of all of the outstanding equity of Guangxi Tianyuan New Energy Materials Co., Ltd. (“Qinzhou”), for approximately $200 million in cash.
On October 25, 2022, the Company completed the acquisition of all of the outstanding equity of Guangxi Tianyuan New Energy Materials Co., Ltd. (“Qinzhou”), for approximately $200 million in cash. Qinzhou’s operations include a recently constructed lithium processing plant strategically positioned near the Port of Qinzhou in Guangxi, which began commercial production in the first half of 2022.
A number of customers of our bromine business operate in cyclical industries, including the consumer electronics and oil field industries. As a result, demand from our customers in such industries is also cyclical. Competition Our bromine business serves markets in the Americas, Asia, Europe and the Middle East, each of which is highly competitive.
We also develop and manufacture cesium products for the chemical and pharmaceutical industries, and zirconium, barium and titanium products for various pyrotechnical applications, including airbag initiators. A number of customers of our Specialties business operate in cyclical industries, including the consumer electronics and oil field industries. As a result, demand from our customers in such industries is also cyclical.
Qinzhou's operations include a recently constructed lithium processing plant strategically positioned near the Port of Qinzhou in Guangxi, which began commercial production in the first half of 2022. The plant has designed annual conversion capacity of up to 25,000 metric tons of lithium carbonate equivalent (“LCE”) and produces battery-grade lithium carbonate and lithium hydroxide.
The plant has a designed annual conversion capacity of up to 25,000 metric tons of lithium carbonate equivalent (“LCE”) and produces battery-grade lithium carbonate and lithium hydroxide. On June 1, 2021, we completed the sale of our fine chemistry services (“FCS”) business to W. R. Grace & Co.
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We are a leading global developer, manufacturer and marketer of highly-engineered specialty chemicals that are designed to meet our customers’ needs across a diverse range of end markets. Our corporate purpose is making the world safe and sustainable by powering the potential of people.
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Albemarle leads the world in transforming essential resources into critical ingredients for mobility, energy, connectivity, and health. Our purpose is to enable a more resilient world. We partner to pioneer new ways to move, power, connect, and protect. The end markets we serve include grid storage, automotive, aerospace, conventional energy, electronics, construction, agriculture and food, pharmaceuticals and medical devices.
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The end markets we serve include energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals and crop protection.
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We believe that our world-class resources with reliable and consistent supply, our leading process chemistry, high-impact innovation, customer centricity and focus on people and planet will enable us to maintain a leading position in the industries in which we operate.
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We believe that our commercial and geographic diversity, technical expertise, access to high-quality resources, innovative capability, flexible, low-cost global manufacturing base, experienced management team and strategic focus on our core base technologies will enable us to maintain leading positions in those areas of the specialty chemicals industry in which we operate.
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Energy Storage Segment Our Energy Storage business pioneers better lithium use through reliable supply and consistent quality. We develop and manufacture a broad range of basic lithium compounds, including lithium carbonate, lithium hydroxide, and lithium chloride.
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The realignment was completed in the first quarter of 2023, and resulted in the following three reportable segments: (1) Energy Storage; (2) Specialties; and (3) Ketjen (Catalysts).
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(“Windfield”), which directly owns 100% of the equity of Talison Lithium Pty.
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We will begin to report our segments in the new structure in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, the period in which the new organizational structure became effective. Lithium Segment Our Lithium business develops lithium-based materials for a wide range of industries and end markets.
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Specialties Segment Our Specialties business optimizes our portfolio of bromine and highly specialized lithium solutions. Our Specialties business serves a variety of industries, including energy, mobility, connectivity, and health. Specialty products are essential in both internal combustion and electric vehicles, from high-voltage cables and powertrains to airbags and tires.
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We produce one of the most diverse product portfolios of lithium derivatives in the industry. We develop and manufacture a broad range of basic lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and value-added lithium specialties and reagents, including butyllithium and lithium aluminum hydride.
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In health, our lithium specialties products are precursors for many pharmaceuticals, while bromine specialties are used to help ensure safer food and water supplies. Other bromine-based specialty chemicals products include elemental bromine, alkyl bromides, inorganic bromides, brominated powdered activated carbon and a number of bromine fine chemicals. Our value-added lithium specialties products include butyllithium and lithium aluminum hydride.
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We also develop and manufacture cesium products for the chemical and pharmaceutical industries, and zirconium, barium and titanium products for various pyrotechnical applications, including airbag initiators. In addition to developing and supplying lithium compounds, we provide technical services, including the handling and use of reactive lithium products.
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Albemarle offers unique refinery catalysts to crack and treat the lightest to the heaviest feedstocks while meeting refinery yield and product needs. 4 Albemarle Corporation and Subsidiaries Within our PCS product line, we manufacture organometallic co-catalysts (e.g., aluminum, magnesium, and zinc alkyls) used in the manufacture of alpha-olefins (e.g., hexene, octene, decene), polyolefins (e.g., polyethylene and polypropylene), and electronics.
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We plan to continue to focus on the development of new products and applications. 3 Albemarle Corporation and Subsidiaries During 2022, net sales to our customer Umicore N.V. and its affiliates represented more than 10% of our consolidated net sales. Competition The global lithium market is highly competitive and growing very rapidly.
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Advances in sustainable aviation fuels, petroleum products and renewable diesel are expected to continue. We estimate that there are currently approximately 600 FCC units being operated globally, each of which requires a constant supply of FCC catalysts.
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Raw Materials and Significant Supply Contracts We obtain lithium: (a) through solar evaporation of our ponds at the Salar de Atacama, in Chile, and in Silver Peak, Nevada; and (b) by purchasing lithium concentrate from our 49%-owned joint venture, Windfield Holdings Pty. Ltd. (“Windfield”), which directly owns 100% of the equity of Talison Lithium Pty.
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In addition, we provide all employees and their dependents with access to our Employee Assistance Program, which provides free mental and behavioral health resources. 5 Albemarle Corporation and Subsidiaries Diversity, Equity and Inclusion Led by our Vice President, Diversity and Inclusion, we strive to develop inclusion and diversity initiatives and deliver meaningful change in our global organization.
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Production of spodumene concentrate at the Wodgina site resumed in the second quarter of 2022 after it had been idled in 2019 following the acquisition of our 60% interest in the Wodgina Project and the formation of MARBL.
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In 2022, we introduced a goal to reduce 90% of our sulfur oxide (SO x ) emissions by 2027. Water is a critical input to Albemarle’s production operations.
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These specialty products are used in chemical synthesis, oil and gas well drilling and completion fluids, mercury control, water purification, beef and poultry processing and various other industrial applications. Other specialty chemicals that we produce include tertiary amines for surfactants, biocides, and disinfectants and sanitizers.
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In addition, we have pursued opportunities to divest businesses that do not fit our high priority business growth profile. The following is a summary of our significant acquisitions, joint ventures and divestitures over the last three years. On October 18, 2023, the Company closed on the restructuring of the MARBL joint venture with Mineral Resources Limited (“MRL”).
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Oil refinery utilization increased to near pre-COVID pandemic levels in 2022, recovering from lower rates in 2021 and 2020, as most refineries had cut throughput due to the reduction in demand resulting from global travel restrictions during those years.
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Under the amended agreements, Albemarle acquired the remaining 40% ownership of the Kemerton lithium hydroxide processing facility in Australia that was jointly owned with MRL through the MARBL joint venture. Following this restructuring, Albemarle and MRL each own 50% of Wodgina, and MRL operates the Wodgina mine on behalf of the joint venture.
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We routinely audit ourselves against our policies, procedures and standards, using internal and third-party resources. We also include health and safety metrics in our annual incentive plan for all employees to incentivize our commitment to safety.
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During the fourth quarter of 2023, Albemarle paid MRL approximately $380 million in cash, which includes 8 Albemarle Corporation and Subsidiaries $180 million of consideration for the remaining ownership of Kemerton as well as a payment for the economic effective date of the transaction being retroactive to April 1, 2022.
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We seek to provide employees with a desirable workplace that will enable us to attract and retain top talent. We believe employees should be compensated through wages and benefits, based on experience, expertise, performance, and the criticality of their roles in the Company.
Removed
In addition, we work with local communities, regulatory agencies and wildlife organizations to preserve and restore land and biodiversity before, during and after all operations commence. 8 Albemarle Corporation and Subsidiaries Recent Acquisitions, Joint Ventures and Divestitures During recent years, we have devoted resources to acquisitions and joint ventures, including the subsequent integration of acquired businesses.
Removed
As part of the transaction, Grace acquired our manufacturing facilities located in South Haven, Michigan and Tyrone, Pennsylvania. In the fourth quarter of 2020, we divested our ownership interest in the Saudi Organometallic Chemicals Company LLC (“SOCC”) joint venture for cash proceeds of $11.0 million.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

78 edited+43 added−20 removed174 unchanged
Biggest changeThese factors include, but are not limited to, the duration and severity of the pandemic, including from the discovery of new strain variants; government restrictions on businesses and individuals; the health and safety of our employees and communities in which we do business; the impact of the pandemic on our customers' businesses and the resulting demand for our products; the impact on our suppliers and supply chain network; the impact on U.S. and global economies and the timing and rate of economic recovery; and potential adverse effects on the financial markets. 24 Albemarle Corporation and Subsidiaries The military conflict between Russia and Ukraine, and the global response to it, could impact our results of operations.
Biggest changeA global or regional pandemic or similar outbreak in a region in which we or our key partners, customers, or suppliers operate could disrupt business, depending on factors including, but not limited to, the duration and severity of the pandemic, government restrictions on businesses and individuals, impact on demand for our products, impact on the supply chain network, and the health and safety of our employees and the communities in which we do business.
In addition, our trade secrets and know-how may be improperly obtained by other means, such as a breach of our information technologies security systems or direct theft. Our inability to acquire or develop additional reserves that are economically viable could have a material adverse effect on our future profitability.
In addition, our trade secrets and know-how may be improperly obtained by other means, such as a breach of our information technologies security systems or direct theft. Our inability to acquire or develop additional lithium reserves that are economically viable could have a material adverse effect on our future profitability.
Historically, major hurricanes have caused significant disruption to the operations on the U.S. Gulf Coast for many of our customers and our suppliers of certain raw materials, which had an adverse impact on volume and cost for some of our products.
Historically, major hurricanes have caused significant disruption to the operations on the U.S. Gulf Coast for many of our customers and certain of our suppliers of raw materials, which has had an adverse impact on volume and cost for some of our products.
Concern about the impact of some of our products on human health or the environment may lead to regulation, or reaction in our markets independent of regulation, that could reduce or eliminate markets for such products. 12 Albemarle Corporation and Subsidiaries Agencies in the European Union (“E.U.”) continue to evaluate the risks to human health and the environment associated with certain brominated fire safety solutions such as tetrabromobisphenol A and decabromodiphenylethane, both of which we manufacture.
Concern about the impact of some of our products on human health or the environment may lead to regulation, or reaction in our markets independent of regulation, that could reduce or eliminate markets for such products. 14 Albemarle Corporation and Subsidiaries Agencies in the European Union (“E.U.”) continue to evaluate the risks to human health and the environment associated with certain brominated fire safety solutions such as tetrabromobisphenol A and decabromodiphenylethane, both of which we manufacture.
Accordingly, these hazards and their consequences could adversely affect our reputation and 13 Albemarle Corporation and Subsidiaries have a material adverse effect on our operations as a whole, including our results of operations and cash flows, both during and after the period of operational difficulties. Our business could be adversely affected by environmental, health and safety laws and regulations.
Accordingly, these hazards and their consequences could adversely affect our reputation and 15 Albemarle Corporation and Subsidiaries have a material adverse effect on our operations as a whole, including our results of operations and cash flows, both during and after the period of operational difficulties. Our business could be adversely affected by environmental, health and safety laws and regulations.
Item 1A. Risk Factors. You should consider carefully the following risks when reading the information, including the financial information, contained in this Annual Report on Form 10-K. Risks Related to Our Business Our substantial international operations subject us to risks of doing business in foreign countries, which could adversely affect our business, financial condition and results of operations.
Risk Factors You should consider carefully the following risks when reading the information, including the financial information, contained in this Annual Report on Form 10-K. Risks Related to Our Business Our substantial international operations subject us to risks of doing business in foreign countries, which could adversely affect our business, financial condition and results of operations.
Additional voluntary pension contributions in and after 2023 may vary depending on factors such as asset returns, interest rates, and legislative changes. The amounts we may elect or be required to contribute to our pension plans in the future may increase significantly. These contributions could be substantial and would reduce the cash available for our business.
Additional voluntary pension contributions in and after 2024 may vary depending on factors such as asset returns, interest rates, and legislative changes. The amounts we may elect or be required to contribute to our pension plans in the future may increase significantly. These contributions could be substantial and would reduce the cash available for our business.
If similar or other weather events, natural disasters, or other catastrophe events occur in the future, they could negatively affect the results of operations at our sites in the affected regions as well as have adverse impacts on the global economy. Our insurance may not fully cover all potential exposures.
If similar or other weather events, natural disasters, or other catastrophic events occur in the future, they could negatively affect the results of operations at our sites in the affected regions as well as have adverse impacts on the global economy. Our insurance may not fully cover all potential exposures.
Competition is based on several key criteria, including product performance and quality, product price, product availability and security of supply, and responsiveness of product development in cooperation with customers and customer service. Some of our competitors are larger than we are and may have greater financial resources.
Competition is based on several key criteria, including product performance and quality, product price, product availability and security of supply, climate-related performance and responsiveness of product development in cooperation with customers and customer service. Some of our competitors are larger than we are and may have greater financial resources.
Finally, we face increased information technology security and fraud risks due to our increased reliance on working remotely during the COVID-19 pandemic and beyond, which may create additional information security vulnerabilities and/or magnify the impact of any disruption in information technology systems.
Additionally, we face increased information technology security and fraud risks due to our increased reliance on working remotely during the COVID-19 pandemic and beyond, which may create additional information security vulnerabilities and/or magnify the impact of any disruption in information technology systems.
We have resumed spodumene concentrate production at the Wodgina mine, but there are no assurances that we will not idle production at the Wodgina mine or one of our other mines in the future due to lack of market demand or for other reasons.
We have since resumed spodumene concentrate production at the Wodgina mine in 2022, but there are no assurances that we will not idle production at the Wodgina mine or one of our other mines in the future due to lack of market demand or for other reasons.
In the future, we may not be able to obtain coverage at current levels, if at all, and our premiums may increase significantly on coverage that we maintain. We may be exposed to certain regulatory and financial risks related to climate change.
In the future, we may not be able to obtain coverage at current levels, if at all, and our premiums may increase significantly on coverage that we maintain. We may be exposed to certain physical, transitional, regulatory and financial risks related to climate change.
We conduct a substantial portion of our business outside the U.S., with approximately 88% of our sales to foreign countries. We operate and/or sell our products to customers in approximately 70 countries. We currently have many production, research and development and administrative facilities as well as sales offices located outside the U.S., as detailed in Item 2. Properties.
We conduct a substantial portion of our business outside the U.S., with approximately 90% of our net sales to foreign countries. We operate and/or sell our products to customers in approximately 70 countries. We currently have many production, research and development and administrative facilities as well as sales offices located outside the U.S., as detailed in Item 2. Properties.
To the extent that any cybersecurity breach results in inappropriate disclosure of our customers’ or licensees’ confidential information, we may incur liability as a result. The devotion of additional resources to the security of our information technology systems in the future could significantly increase the cost of doing business or otherwise adversely impact our financial results.
To the extent that a cybersecurity breach results in inappropriate disclosure of our employees’, customers’ or licensees’ confidential or personal information, we may incur liability as a result. The devotion of additional resources to the security of our information technology systems in the future could significantly increase the cost of doing business or otherwise adversely impact our financial results.
Risks inherent in international operations include the following: • fluctuations in foreign currency exchange rates may affect product demand and may adversely affect the profitability in U.S. dollars of products and services we provide in international markets where payment for our products and services is made in the local currency; 9 Albemarle Corporation and Subsidiaries • transportation and other shipping costs may increase, or transportation may be inhibited; • increased cost or decreased availability of raw materials; • increased regulations on, or reduced access to, scarce resources, such as freshwater; • changes in foreign laws and tax rates or U.S. laws and tax rates with respect to foreign income may unexpectedly increase the rate at which our income is taxed, impose new and additional taxes on remittances, repatriation or other payments by subsidiaries, or cause the loss of previously recorded tax benefits; • foreign countries in which we do business may adopt other restrictions on foreign trade or investment, including currency exchange controls; • trade sanctions by or against foreign countries in which we do business could result in our losing access to customers and suppliers in those countries; • unexpected adverse changes in foreign laws or regulatory requirements may occur; • our agreements with counterparties in foreign countries may be difficult for us to enforce and related receivables may be difficult for us to collect; • compliance with the variety of foreign laws and regulations may be unduly burdensome; • compliance with anti-bribery and anti-corruption laws (such as the Foreign Corrupt Practices Act) as well as anti-money-laundering laws may be costly; • unexpected adverse changes in export duties, quotas and tariffs and difficulties in obtaining export licenses may occur; • general economic conditions in the countries in which we operate could have an adverse effect on our earnings from operations in those countries; • our foreign operations may experience staffing difficulties and labor disputes; • termination or substantial modification of international trade agreements may adversely affect our access to raw materials and to markets for our products outside the U.S.; • foreign governments may nationalize or expropriate private enterprises; • increased sovereign risk (such as default by or deterioration in the economies and credit worthiness of local governments) may occur; and • political or economic repercussions from terrorist activities, including the possibility of hyperinflationary conditions and political instability, may occur in certain countries in which we do business.
Risks inherent in international operations include the following: • fluctuations in foreign currency exchange rates may affect product demand and may adversely affect the profitability in U.S. dollars of products and services we provide in international markets where payment for our products and services is made in the local currency; • transportation and other shipping costs may increase, or transportation may be inhibited; • increased cost or decreased availability of raw materials; • increased regulations on, or reduced access to, scarce resources, such as freshwater; • changes in foreign laws and tax rates or U.S. laws and tax rates with respect to foreign income may unexpectedly increase the rate at which our income is taxed, impose new and additional taxes on remittances, repatriation or other payments by subsidiaries, or cause the loss of previously recorded tax benefits; • foreign countries in which we do business may adopt other restrictions on foreign trade or investment, including currency exchange controls; • trade sanctions by or against foreign countries in which we do business could result in our losing access to customers and suppliers in those countries; • unexpected adverse changes in foreign laws or regulatory requirements may occur; • our agreements with counterparties in foreign countries may be difficult for us to enforce and related receivables may be difficult for us to collect; • compliance with the variety of foreign laws and regulations may be unduly burdensome; 11 Albemarle Corporation and Subsidiaries • compliance with anti-bribery and anti-corruption laws (such as the Foreign Corrupt Practices Act) as well as anti-money-laundering laws may be costly; • compliance with changing cybersecurity rules and evolving data privacy rules and regulation, such as the European Union’s General Data Protection Regulation, could increase our cost of doing business; • unexpected adverse changes in export duties, quotas and tariffs and difficulties in obtaining export licenses may occur; • general economic conditions in the countries in which we operate could have an adverse effect on our earnings from operations in those countries; • our foreign operations may experience staffing difficulties and labor disputes; • termination or substantial modification of international trade agreements may adversely affect our access to raw materials and to markets for our products outside the U.S.; • foreign governments may nationalize or expropriate private enterprises; • increased sovereign risk (such as default by or deterioration in the economies and credit worthiness of local governments) may occur; and • political or economic repercussions from terrorist activities, including the possibility of hyperinflationary conditions and political instability, may occur in certain countries in which we do business.
To the extent that such development, adoption and growth do not occur in the volume and/or manner that we contemplate, including for reasons described under the heading “The development of non-lithium battery technologies could adversely affect us,” above, the long-term growth in the 16 Albemarle Corporation and Subsidiaries markets for lithium products may be adversely affected, which would have a material adverse effect on our business, financial condition and operating results.
To the extent that such development, adoption, decarbonization and growth do not occur in the volume and/or manner that we contemplate, including for reasons described under the heading “The development of non-lithium battery technologies could adversely affect us,” above, the long-term growth in the markets for lithium products may be adversely affected, which would have a material adverse effect on our business, financial condition and operating results.
The amount of any such required contributions will be determined annually based on an actuarial valuation of the plans as performed by the plans’ actuaries. In previous years, we have made voluntary contributions to our U.S. qualified defined benefit pension plans. We anticipate approximately $12 million of required cash contributions during 2023 for our defined benefit pension plans.
The amount of any such required contributions will be determined annually based on an actuarial valuation of the plans as performed by the plans’ actuaries. In previous years, we have made voluntary contributions to our U.S. qualified defined benefit pension plans. We anticipate approximately $11 million of required cash contributions during 2024 for our defined benefit pension plans.
The market price of these products can fluctuate and is affected by numerous factors beyond our control, primarily world supply and demand. Such external economic factors are influenced by changes in international investment patterns, various political developments and macro-economic circumstances. In addition, the price of lithium products is impacted by their purity and performance.
The market price of these products can fluctuate and is affected by numerous factors beyond our control, primarily world supply and demand. Such 18 Albemarle Corporation and Subsidiaries external economic factors are influenced by changes in international investment patterns, various political developments and macro-economic circumstances. In addition, the price of lithium products is impacted by their purity and performance.
Our lithium reserves will, without more, decline as we continue to extract these raw materials. Accordingly, our future profitability depends upon our ability to acquire additional lithium reserves that are economically viable to replace the reserves we will extract. Exploration and development of lithium resources are highly speculative in nature.
Our lithium reserves will, without acquiring or developing additional reserves, decline as we continue to extract these raw materials. Accordingly, our future profitability depends upon our ability to acquire additional lithium reserves that are economically viable to replace the reserves we will extract. Exploration and development of lithium resources are highly speculative in nature.
The resulting damage from a direct attack on our assets, or assets used by us, could include loss of life and property damage. In addition, available insurance coverage may not be sufficient to cover all of the damage incurred or, if available, may be prohibitively expensive.
The resulting damage from a direct attack on our assets, or assets used by us, could 25 Albemarle Corporation and Subsidiaries include loss of life and property damage. In addition, available insurance coverage may not be sufficient to cover all of the damage incurred or, if available, may be prohibitively expensive.
In that case, our results of operations may be adversely affected and we may be required to materially change the level of our commitment to the joint 17 Albemarle Corporation and Subsidiaries venture. Also, differences in views among joint venture participants may result in delayed decisions or failures to agree on major issues.
In that case, our results of operations may be adversely affected and we may be required to materially change the level of our commitment to the joint venture. Also, differences in views among joint venture participants may result in delayed decisions or failures to agree on major issues.
In addition, risks associated with information technology systems failures or network disruptions, including risks associated with upgrading our systems or in successfully integrating information technology and other systems in connection with the integration of businesses we acquire, could disrupt our operations by impeding our processing of transactions, financial reporting and our ability to protect our customer or company information, which could adversely affect our business and results of operations.
In addition, risks associated with information technology systems failures or network disruptions, including risks associated with upgrading our systems or in successfully integrating information technology and other systems in connection with the integration of businesses we acquire, or vulnerabilities in our third-party service providers’ systems, could disrupt our operations by impeding our processing of transactions, financial reporting and our ability to protect our customer or company information, which could adversely affect our business and results of operations.
Additionally, geopolitical disputes (including as a result of China-Taiwan and U.S.-Taiwan relations) between the U.S. and China may lead to further restrictions on trade and/or obstacles to conducting business in China. Recently, Australia 10 Albemarle Corporation and Subsidiaries and China have attempted to improve relations and resolve trade disputes.
Additionally, geopolitical disputes (including as a result of China-Taiwan and U.S.-Taiwan relations) between the U.S. and China may lead to further restrictions on trade and/or obstacles to conducting business in China. Recently, Australia and China have attempted to improve relations and resolve trade disputes.
See “Financial Condition and Liquidity—Long-Term Debt” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 18 Albemarle Corporation and Subsidiaries 19 Albemarle Corporation and Subsidiaries Changes in credit ratings issued by nationally recognized statistical rating organizations could adversely affect our cost of financing, the market price of our securities and our debt service obligations.
See “Financial Condition and Liquidity—Long-Term Debt” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Changes in credit ratings issued by nationally recognized statistical rating organizations could adversely affect our cost of financing, the market price of our securities and our debt service obligations.
The theft, unauthorized use or publication of our intellectual property and/or confidential business information could harm our competitive position, reduce the value of our investment in research and development and other strategic initiatives or otherwise 23 Albemarle Corporation and Subsidiaries adversely affect our business.
The theft, unauthorized use or publication of our intellectual property and/or confidential business information could harm our competitive position, reduce the value of our investment in research and development and other strategic initiatives or otherwise adversely affect our business.
In addition, our customers use our specialty chemicals for a broad range of applications. Changes in our customers’ products or processes may enable our customers to reduce consumption of the specialty chemicals that we produce or make our specialty chemicals unnecessary. Customers may also find alternative materials or processes that do not require our products.
In addition, our customers use our specialty chemicals for a broad range of applications. Changes in our customers’ products or processes may enable our customers to reduce consumption of the specialty chemicals that we produce or make our 13 Albemarle Corporation and Subsidiaries specialty chemicals unnecessary. Customers may also find alternative materials or processes that do not require our products.
Furthermore, the potential impact of climate change and related regulation, market trends or litigation on the Company is highly uncertain and there can be no assurance that it will not have an adverse effect on our financial condition and results of operations. Item 1B. Unresolved Staff Comments. NONE
Furthermore, the potential impact of climate change and related regulation, market trends or litigation on the Company is highly uncertain and there can be no assurance that it will not have an adverse effect on our financial condition and results of operations.
Significant regional or national differences in approaches 25 Albemarle Corporation and Subsidiaries to environmental laws and regulations could affect us disproportionately compared to our competitors and result in a competitive disadvantage to us.
Significant regional or national differences in approaches to environmental laws and regulations could affect us disproportionately compared to our competitors and result in a competitive disadvantage to us.
Some of our employees are unionized, represented by works councils or are employed subject to local laws that are less favorable to employers than the laws of the U.S. As of December 31, 2022, we had approximately 7,400 employees, including employees of our consolidated joint ventures. Approximately 30% of these employees are represented by unions or works councils.
Some of our employees are unionized, represented by works councils or are employed subject to local laws that are less favorable to employers than the laws of the U.S. As of December 31, 2023, we had approximately 9,000 employees, including employees of our consolidated joint ventures. Approximately 26% of these employees are represented by unions or works councils.
We endeavor to license or otherwise obtain intellectual 15 Albemarle Corporation and Subsidiaries property rights on terms favorable to us. However, we may not be able to license or otherwise obtain intellectual property rights on such terms or at all.
We endeavor to license or otherwise obtain intellectual property rights on terms favorable to us. However, we may not be able to license or otherwise obtain intellectual property rights on such terms or at all.
Natural disasters or other unanticipated catastrophes could impact our results of operations. The occurrence of natural disasters, such as hurricanes, floods or earthquakes; pandemics, such as COVID-19; or other unanticipated catastrophes at any of the locations in which we or our key partners, suppliers and customers do business, could cause interruptions in our operations.
The occurrence of natural disasters, such as hurricanes, floods, droughts, extreme heat, storms or earthquakes; pandemics, such as the COVID-19 pandemic; or other unanticipated catastrophes at any of the locations in which we or our key partners, suppliers, or customers do business could cause interruptions in our operations.
Our inability to generate sufficient cash flow or use existing cash balances to satisfy our debt obligations, or to refinance our obligations on commercially reasonable terms, could have a material adverse effect on our business and financial condition. Restrictive covenants in our debt instruments may adversely affect our business.
Our inability to generate sufficient cash flow or use existing cash balances to satisfy our debt obligations, or to refinance our obligations on commercially reasonable terms, could have a material adverse effect on our business and financial condition.
Some of the risks associated with the integration of acquisitions include: • potential disruption of our ongoing business and distraction of management; • unforeseen claims and liabilities, including unexpected environmental exposures; • unforeseen adjustments, charges and write-offs; • problems enforcing the indemnification obligations of sellers of businesses or joint venture partners for claims and liabilities; • unexpected losses of customers of, or suppliers to, the acquired business; • difficulty in conforming the acquired businesses’ standards, processes, procedures and controls with our operations; • in the case of foreign acquisitions, the need to integrate operations across different cultures and languages and to address the particular economic, currency, political and regulatory risks associated with specific countries; • variability in financial information arising from the implementation of purchase price accounting; • inability to coordinate new product and process development; • loss of senior managers and other critical personnel and problems with new labor unions and cultural challenges associated with integrating employees from the acquired company into our organization; and • challenges arising from the increased scope, geographic diversity and complexity of our operations. 22 Albemarle Corporation and Subsidiaries We may continue to expand our business through acquisitions and we may incur additional indebtedness, including indebtedness related to acquisitions.
Some of the risks associated with the integration of acquisitions include: • potential disruption of our ongoing business and distraction of management; • unforeseen claims and liabilities, including unexpected environmental exposures and litigation arising from acquisitions; • unforeseen adjustments, charges and write-offs; • problems enforcing the indemnification obligations of sellers of businesses or joint venture partners for claims and liabilities; • unexpected losses of customers of, or suppliers to, the acquired business; • difficulty in conforming the acquired businesses’ standards, processes, procedures and controls with our operations; • in the case of foreign acquisitions, the need to integrate operations across different cultures and languages and to address the particular economic, currency, political and regulatory risks associated with specific countries; • variability in financial information arising from the implementation of purchase price accounting; • inability to coordinate new product and process development; • loss of senior managers and other critical personnel and problems with new labor unions and cultural challenges associated with integrating employees from the acquired company into our organization; • diversion of management’s attention from other business matters; and • challenges arising from the increased scope, geographic diversity and complexity of our operations. 23 Albemarle Corporation and Subsidiaries Any such integration failure could disrupt our business and have a material adverse effect on our consolidated financial condition and results of operations.
Many of our customers are in industries, including the electronics, building and construction, oilfield and automotive industries, which are cyclical in nature, or which are subject to secular market downturns.
Many of our customers are in industries, including the electronics, building and construction, oilfield and automotive industries, are cyclical in nature, or which are subject to secular market downturns or may face adverse effects of evolving regulatory regimes.
If our contractual indemnity is not upheld or effective, our accrual and/or our costs for the investigation and cleanup of hazardous substances could increase materially. 14 Albemarle Corporation and Subsidiaries We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar foreign anti-corruption laws. The U.S.
If our contractual indemnity is not upheld or effective, our accrual and/or our costs for the investigation and cleanup of hazardous substances could increase materially. 16 Albemarle Corporation and Subsidiaries We could be adversely affected by violations of the U.S.
Our lithium business is significantly dependent on the development and adoption of new applications for lithium batteries and the growth in demand for plug-in hybrid electric vehicles and battery electric vehicles.
Our lithium business is significantly dependent on the development and adoption of new applications for lithium batteries and the growth in demand for plug-in hybrid electric vehicles and battery electric vehicles. As such, our business results inherently depend on decarbonization of the global economy.
Our future growth depends on our ability to gauge the direction of the commercial and technological progress in all key end markets in which we sell our products and upon our ability to fund and successfully develop, manufacture and market products in such changing end markets.
Our future growth depends on our ability to gauge the direction of the commercial and technological progress in all key end markets in which we sell our products and upon our ability to fund and successfully develop, manufacture and market products in such changing end markets. As a result, we must commit substantial resources each year to research and development.
Our senior credit facilities and the indentures governing our senior notes contain select restrictive covenants. These covenants provide constraints on our financial flexibility.
Restrictive covenants in our debt instruments may adversely affect our business. Our senior credit facilities and the indentures governing our senior notes contain select restrictive covenants. These covenants provide constraints on our financial flexibility.
Dollar in recent years have fluctuated significantly and may do so in the future. With respect to our potential exposure to foreign currency fluctuations and devaluations, for the year ended December 31, 2022, approximately 29% of our net sales were denominated in currencies other than the U.S. Dollar. Significant changes in these foreign currencies relative to the U.S.
With respect to our potential exposure to foreign currency fluctuations and devaluations, for the year ended December 31, 2023, approximately 28% of our net sales were denominated in currencies other than the U.S. Dollar. Significant changes in these foreign currencies relative to the U.S.
We manufacture or market a number of products that are or have been the subject of attention by regulatory authorities and environmental interest groups. For example, over the past decade, there has been increasing scrutiny of certain brominated fire safety solutions by regulatory authorities, legislative bodies and environmental interest groups in various countries.
For example, over the past decade, there has been increasing scrutiny of certain brominated fire safety solutions by regulatory authorities, legislative bodies and environmental interest groups in various countries.
Our ability to successfully develop our lithium resources, including our 60% interest in MARBL’s Wodgina mine, and generate a return on investment will be affected by changes in the demand for and market price of lithium-based end products, such as lithium hydroxide.
Demand and market prices for lithium will greatly affect the value of our investment in our lithium resources and our revenues and profitability generally. Our ability to successfully develop our lithium resources and generate a return on investment will be affected by changes in the demand for and market price of lithium-based end products, such as lithium hydroxide.
This rule establishes risk-based performance standards for the security of the U.S.’s chemical facilities. It requires covered chemical facilities to prepare Security Vulnerability Assessments, which identify facility security vulnerabilities, and to develop and implement Site Security Plans, which include measures that satisfy the identified risk-based performance standards.
They require covered chemical facilities to prepare Security Vulnerability Assessments, which identify facility security vulnerabilities, and to develop and implement Site Security Plans, which include measures that satisfy the identified risk-based performance standards.
Compliance with environmental laws generally increases the costs of manufacturing, registration/approval requirements, transportation and storage of raw materials and finished products, and storage and disposal of wastes, and could have a material adverse effect on our results of operations.
Compliance with environmental laws generally increases the costs of manufacturing, registration/approval requirements, transportation and storage of raw materials and finished products, and storage and disposal of wastes, and could have a material adverse effect on our results of operations. For example, we may be subject to carbon pricing or taxation proposals in some jurisdictions where we operate.
We seek to detect and investigate all security incidents and to prevent their recurrence, but in some cases we might be unaware of an incident or its magnitude and effects.
We seek to detect and investigate all security incidents and to prevent their recurrence, as well as work with third-party service providers on detection of, and alerting us to, any incidents affecting us, but in some cases we might be unaware of an incident or its magnitude and effects.
In addition, the timing and profitability of HPC catalysts sales can have a significant impact on revenue and profit in any one quarter. Sales of our agrichemicals are also subject to fluctuation as demand varies depending on climate and other environmental conditions, which may prevent or reduce farming for extended periods.
Sales of our agrichemicals are also subject to fluctuation as demand varies depending on climate and other environmental conditions, which may prevent or reduce farming for extended periods. In addition, crop pricing and the timing of when farms alternate from one crop to another crop in a particular year can also alter sales of agrichemicals.
Legal and regulatory proceedings, whether with or without merit, and associated internal investigations, may be time-consuming and expensive to prosecute, defend or conduct, may divert management’s attention and other resources, inhibit our ability to sell our products, result in adverse judgments for damages, injunctive relief, penalties and fines, and otherwise negatively affect our business.
Legal and regulatory proceedings, whether with or without merit, and associated internal investigations, may be time-consuming and expensive to prosecute, defend or conduct, may divert management’s attention and other resources, inhibit our ability to sell our products, result in adverse judgments for damages, injunctive relief, penalties and fines, and otherwise negatively affect our business. 22 Albemarle Corporation and Subsidiaries Although our pension plans currently meet minimum funding requirements, events could occur that would require us to make significant contributions to the plans and reduce the cash available for our business.
Such geo-political instability and uncertainty could have a negative impact on our ability to sell to, ship products to, collect payments from, and support customers in certain regions based on trade restrictions, embargoes and export control law restrictions, and logistics restrictions including closures of air space, and could increase the costs, risks and adverse impacts from these new challenges.
Such geo-political instability and uncertainty could have a negative impact on our ability to conduct business in certain regions based on trade restrictions, embargoes and export control law restrictions, and logistics restrictions, and could increase the costs, risks and adverse impacts from these new challenges. We may also be the subject of increased cybersecurity breaches arising from geo-political instability.
Payments to us by our subsidiaries and joint ventures are contingent upon our subsidiaries’ or joint ventures’ earnings and other business considerations and may be subject to statutory or contractual restrictions.
Payments to us by our subsidiaries and joint ventures are contingent upon our subsidiaries’ or joint ventures’ earnings and other business considerations and may be subject to statutory or contractual restrictions. In addition, there may be significant tax and other legal restrictions on the ability of our non-U.S. subsidiaries or joint ventures to remit money to us.
Downgrading the credit rating of our debt securities or placing us on a watch list for possible future downgrades would likely increase our cost of future financing, limit our access to the capital markets and have an adverse effect on the market price of our securities.
Downgrading the credit rating of our debt securities or placing us on a watch list for possible future downgrades would likely increase our cost of future financing, limit our access to the capital markets and have an adverse effect on the market price of our securities. 20 Albemarle Corporation and Subsidiaries Borrowings under a portion of our debt facilities bear interest at floating rates, and are subject to adjustment based on the ratings of our senior unsecured long-term debt.
Currently, the majority of our net sales are generated from customers located outside the U.S., and a substantial portion of our assets and employees are located outside of the U.S. 20 Albemarle Corporation and Subsidiaries We have not accrued income taxes or foreign withholding taxes on undistributed earnings for most non-U.S. subsidiaries, because those earnings are intended to be indefinitely reinvested in the operations of those subsidiaries.
We have not accrued income taxes or foreign withholding taxes on undistributed earnings for most non-U.S. subsidiaries, because those earnings are intended to be indefinitely reinvested in the operations of those subsidiaries.
For example, export control and economic embargo regulations limit the ability of our subsidiaries to market, sell, distribute or otherwise transfer their products or technology to prohibited countries or persons. Failure to comply with these regulations could subject our subsidiaries to fines, enforcement actions and/or have an adverse effect on our reputation and the value of our common stock.
For example, export control and economic embargo regulations limit the ability of our subsidiaries to market, sell, distribute or otherwise transfer their products or technology to prohibited countries or persons.
Additionally, we own three production facilities located in China and are in the process of constructing a lithium conversion plant in Meishan, China.
In 2023, net sales shipped to China represented 30% of our total net sales. Additionally, we own three production facilities located in China and are in the process of commissioning and starting up a lithium conversion plant in Meishan, China.
We currently do not sell our products into Russia nor have assets or any operations in the country, however, a significant escalation or expansion of economic disruption or the conflict’s current scope could have a material adverse effect on our results of operations due to its impact in the countries in which we do conduct business.
It is not possible to predict the broader or longer-term consequences of this conflict, which could include further sanctions, embargoes, regional instability, energy shortages, geopolitical shifts and adverse effects on macroeconomic conditions, security conditions, currency exchange rates and financial markets.We currently do not sell our products into Russia nor have assets or any operations in the country, however, a significant escalation or expansion of economic disruption or the conflict’s current scope could have a material adverse effect on our results of operations due to its impact in the countries in which we do conduct business.
Our operations in Chile could be subject to significant rain events and earthquakes, and our operations in Asia could be subject to weather events such as typhoons. A global or regional pandemic or similar outbreak in a region of our, our customers, or our suppliers could disrupt business.
Our operations in Chile could be subject to significant rain events and earthquakes, and our operations in Asia could be subject to weather events such as typhoons.
Historically, cyclical or secular industry downturns have resulted in diminished demand for our products, excess manufacturing capacity and lower average selling prices, and we may experience similar problems in the future. A decline in our customers’ industries may have a material adverse effect on our sales and profitability.
Historically, cyclical or secular industry downturns have resulted in diminished demand for our products, excess manufacturing capacity and lower average selling prices, and we may experience similar problems in the future. Additionally, certain of these industries are subject to regulatory schemes that may shift with changes in the political climate.
The effectiveness of HPC catalysts diminishes with use, requiring the HPC catalysts to be replaced, on average, once every one to four years. The sales of our HPC catalysts, therefore, are largely dependent on the useful life cycle of the HPC catalysts in the processing units and may vary materially by quarter.
Our HPC catalysts are used by petroleum refiners in their processing units to reduce the quantity of sulfur and other impurities in petroleum products. The effectiveness of HPC catalysts diminishes with use, requiring the HPC catalysts to be replaced, on average, once every one to four years.
We may not be able to effectively mitigate against such fluctuations. Following the Wodgina acquisition, the Wodgina mine idled production of spodumene until market demand supported bringing the mine back into production.
Following the Wodgina acquisition in 2019, the Wodgina mine idled production of spodumene until market demand supported bringing the mine back into production.
We are exposed to fluctuations in currency exchange rates, which may adversely affect our operating results and net income. We conduct our business and incur costs in the local currency of most of the countries in which we operate. Changes in exchange rates between foreign currencies and the U.S.
We conduct our business and incur costs in the local currency of most of the countries in which we operate. Changes in exchange rates between foreign currencies and the U.S. Dollar will affect the recorded levels of our assets, liabilities, net sales, cost of goods sold and operating margins and could result in exchange losses.
Risks Related to Our Financial Condition Our required capital expenditures can be complex, may experience delays or other difficulties, and the costs may exceed our estimates. Our capital expenditures generally consist of expenditures to maintain and improve existing equipment, facilities and properties, and substantial investments in new or expanded equipment, facilities and properties.
Our capital expenditures generally consist of expenditures to maintain and improve existing equipment, facilities and properties, and substantial investments in new or expanded equipment, facilities and properties.
Our operating results and net income may be affected by any volatility in currency exchange rates and our ability to manage effectively our currency transaction and translation risks. Inflationary trends in the price of our input costs, such as raw materials, transportation and energy, could adversely affect our business and financial results.
Inflationary trends in the price of our input costs, such as raw materials, transportation and energy, could adversely affect our business and financial results.
Even if we ultimately prevail in an infringement suit, the existence of the suit could prompt customers to switch to products that are not the subject of infringement suits. We may not prevail in intellectual property litigation and such litigation may result in significant legal costs or otherwise impede our ability to produce and distribute key products.
Even if we ultimately prevail in an infringement suit, the existence of the suit could prompt customers to switch to products that are not the subject of 17 Albemarle Corporation and Subsidiaries infringement suits.
We continue to monitor the effects of the Inflation Reduction Act and other regulatory developments on our financial condition, operating results, and income tax rate.
We continue to monitor the effects of the Inflation Reduction Act and other regulatory 21 Albemarle Corporation and Subsidiaries developments on our financial condition, operating results, and income tax rate. Currently, the majority of our net sales are generated from customers located outside the U.S., and a substantial portion of our assets and employees are located outside of the U.S.
In December 2014, the Protecting and Securing Chemical Facilities from Terrorist Attacks Act of 2014 (“CFATS Act”) was enacted. DHS has enacted new rules under the CFATS Program that imposes comprehensive federal security regulations for high-risk chemical facilities in possession of specified quantities of chemicals of interest.
DHS has enacted rules under the CFATS Program that impose comprehensive federal security regulations for high-risk chemical facilities in possession of specified quantities of chemicals of interest. These rules establish risk-based performance standards for the security of the U.S.’s chemical facilities.
We also rely upon unpatented proprietary manufacturing expertise, continuing technological innovation and other trade secrets to develop and maintain our competitive position.
We may not prevail in intellectual property litigation and such litigation may result in significant legal costs or otherwise impede our ability to produce and distribute key products. We also rely upon unpatented proprietary manufacturing expertise, continuing technological innovation and other trade secrets to develop and maintain our competitive position.
Dollar will affect the recorded levels of our assets, liabilities, net sales, cost of goods sold and operating margins and could result in exchange losses. The primary currencies to which we have exposure are the Chinese Renminbi, Euro, Australian Dollar, Chilean Peso and Japanese Yen. Exchange rates between these currencies and the U.S.
The primary currencies to which we have exposure are the Chinese Renminbi, Euro, Australian Dollar, Chilean Peso and Japanese Yen. Exchange rates between these currencies and the U.S. Dollar in recent years have fluctuated significantly and may do so in the future.
Also, it could be difficult to find replacements for business partners without incurring significant delays or cost increases. Finally, any such adverse conditions in the economy and financial markets could make it difficult for us to raise debt or equity capital on favorable terms.
Finally, any such adverse conditions in the economy and financial markets could make it difficult for us to raise debt or equity capital on favorable terms. 24 Albemarle Corporation and Subsidiaries Our business and operations could suffer in the event of cybersecurity breaches, information technology system failures, or network disruptions.
The COVID-19 pandemic, and any future pandemic, could have a material adverse effect on our results of operations, financial position, and cash flows. We continue to closely monitor the impact of the COVID-19 pandemic and its impact on our business.
Natural disasters or other unanticipated catastrophes could impact our operations and could have a material adverse effect on our results of operations, financial position, and cash flows.
Because we conduct substantial operations in China, risks associated with regulatory activity and political and social events in China could negatively affect our business and operating results. In 2022, net sales shipped to China represented 33% of our total net sales.
Foreign Corrupt Practices Act; see “ We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar foreign anti-corruption laws. ” below. Because we conduct substantial operations in China, risks associated with regulatory activity and political and social events in China could negatively affect our business and operating results.
Our business and operations could suffer in the event of cybersecurity breaches, information technology system failures, or network disruptions. Attempts to gain unauthorized access to our information technology systems become more sophisticated over time. These attempts, which might be related to industrial or other espionage, include covertly introducing malware to our computers and networks and impersonating authorized users, among others.
These attempts, which might be related to industrial or other espionage, include covertly introducing malware to computers and networks and impersonating authorized users, among others.
We work with numerous independent suppliers to mitigate lack of availability from a single supplier, however in some cases products with limited numbers of suppliers may become difficult to obtain. A number of governments or governmental bodies have introduced or are contemplating regulatory changes in response to climate change, including regulating greenhouse gas emissions.
Growing concerns about climate change may result in the imposition of additional regulations or restrictions to which we may become subject. A number of governments or governmental bodies have introduced or are contemplating regulatory changes in response to climate change, including regulating greenhouse gas emissions.
Borrowings under a portion of our debt facilities bear interest at floating rates, and are subject to adjustment based on the ratings of our senior unsecured long-term debt. The downgrading of any of our ratings or an increase in any of the benchmark interest rates would result in an increase of the interest expense on our variable rate borrowings.
The downgrading of any of our ratings or an increase in any of the benchmark interest rates would result in an increase of the interest expense on our variable rate borrowings. We are exposed to fluctuations in currency exchange rates, which may adversely affect our operating results and net income.
While lithium market indices have increased 70% to 200% since the start of 2022, they may decline in the future, and any such decline could have a material and adverse effect on the revenues and profitability of our Lithium business and on our company generally.
High volatility or further declines in the lithium prices could have a material and adverse effect on the revenues and profitability of our Lithium business and on our company generally.
Growing concerns about climate change may result in the imposition of additional regulations or restrictions to which we may become subject. Climate changes include changes in rainfall and in storm patterns and intensities, water shortages, significantly changing sea levels and increasing atmospheric and water temperatures, among others.
Climate change includes changes in rainfall and in storm patterns and intensities, water shortages, significantly changing sea levels and increasing atmospheric and water temperatures, among others. For example, there have been concerns regarding the declining water level of the Dead Sea, from which our joint venture, JBC, produces bromine.
For example, there have been concerns regarding the declining water level of the Dead Sea, from which our joint venture, JBC, produces bromine. Climate changes and unprecedented weather events may pose a risk to business operations in vulnerable areas. Storms could cause business interruptions, incur additional restoration costs, and impact product availability and pricing.
Climate changes and unprecedented weather events may pose a risk to business operations in vulnerable areas. In some regions including China, 26 Albemarle Corporation and Subsidiaries extreme heat and drought conditions could also impact the availability of hydropower resulting in decreased production and/or increased costs. Storms could cause business interruptions, incur additional restoration costs, and impact product availability and pricing.
Our results are subject to fluctuation because of irregularities in the demand for our HPC catalysts and certain of our agrichemicals. Our HPC catalysts are used by petroleum refiners in their processing units to reduce the quantity of sulfur and other impurities in petroleum products.
A decline in our customers’ industries may have a material adverse effect on our sales and profitability. Our results are subject to fluctuation because of irregularities in the demand for our HPC catalysts and certain of our agrichemicals.
Based on this internal investigation, we have voluntarily self-reported potential issues relating to the use of third-party sales representatives in our Refining Solutions business, within our Catalysts segment, to the U.S. Department of Justice (“DOJ”), the SEC, and the Dutch Public Prosecutor (“DPP”), and are cooperating with the DOJ, the SEC, and the DPP in their review of these matters.
In September 2023, following an internal investigation and voluntary self-reporting of potential violations of the FCPA, we finalized agreements with the U.S. Department of Justice (“DOJ”) and the SEC relative to improper payments made, prior to 2018, by third-party sales representatives of our Refining Solutions business (now Ketjen).
If these differences cause the joint ventures to deviate from their business plans, our results of operations could be adversely affected. The realignment of our former Lithium, Bromine and Catalysts segments into our Energy Storage, Specialties and Ketjen (Catalysts) segments may not benefit us as we expect or result in an improvement in our operating results.
If these differences cause the joint ventures to deviate from their business plans, our results of operations could be adversely affected. 19 Albemarle Corporation and Subsidiaries Risks Related to Our Financial Condition Our required capital expenditures can be complex, may experience delays or other difficulties, and the costs may exceed our estimates.
In addition, crop pricing and the timing of when farms alternate from one crop to another crop in a particular year can also alter sales of agrichemicals. Regulation, or the threat of regulation, of some of our products could have an adverse effect on our sales and profitability.
Regulation, or the threat of regulation, of some of our products could have an adverse effect on our sales and profitability. We manufacture or market a number of products that are or have been the subject of attention by regulatory authorities and environmental interest groups.
Removed
As a result, we must commit substantial resources each year to research and 11 Albemarle Corporation and Subsidiaries development.
Added
Item 1A. Risk Factors. Risk Factor Summary The following is a summary of some of the principal risks that could adversely affect our business, financial condition or results of operations. This summary should be read together with the more detailed description of each risk contained below.

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Item 2. Properties

Properties — owned and leased real estate

124 edited+27 added−10 removed106 unchanged
Biggest changeLocation Principal Use Owned/Leased Lithium Chengdu, China Production of lithium carbonate and technical and battery-grade lithium hydroxide Owned Greenbushes, Australia (a) Production of lithium spodumene minerals and lithium concentrate Owned (c) Kemerton, Australia Production of lithium carbonate and technical and battery-grade lithium hydroxide Owned (c) Kings Mountain, NC Production of technical and battery-grade lithium hydroxide, lithium salts and battery-grade lithium metal products Owned La Negra, Chile Production of technical and battery-grade lithium carbonate and lithium chloride Owned Langelsheim, Germany Production of butyllithium, lithium chloride, specialty products, lithium hydrides, cesium and special metals Owned New Johnsonville, TN Production of butyllithium and specialty products Owned Qinzhou, China Production of lithium carbonate and technical and battery-grade lithium hydroxide Owned Salar de Atacama, Chile (a) Production of lithium brine and potash Owned (d) Silver Peak, NV (a) Production of lithium brine, technical-grade lithium carbonate and lithium hydroxide Owned Taichung, Taiwan Production of butyllithium Owned Wodgina, Australia (a) Production of lithium spodumene minerals and lithium concentrate Owned and leased (c) Xinyu, China Production of lithium carbonate and technical and battery-grade lithium hydroxide Owned Bromine Baton Rouge, LA Research and product development activities, and production of fire safety solutions Leased Magnolia, AR (a) Production of fire safety solutions, bromine, inorganic bromides, agricultural intermediates and tertiary amines Owned 26 Albemarle Corporation and Subsidiaries Location Principal Use Owned/Leased Safi, Jordan (a) Production of bromine and derivatives and fire safety solutions Owned and leased (c) Twinsburg, OH Production of bromine-activated carbon Leased Catalysts Amsterdam, the Netherlands Production of refinery catalysts, research and product development activities Owned Bitterfeld, Germany Refinery catalyst regeneration, rejuvenation, and sulfiding Owned (c) La Voulte, France Refinery catalysts regeneration and treatment, research and development activities Owned (c) McAlester, OK Refinery catalyst regeneration, rejuvenation, pre-reclaim burn off, as well as specialty zeolites and additives marketing activities Owned (c) Mobile, AL Production of tin stabilizers Owned (c) Niihama, Japan Production of refinery catalysts Leased (c) Pasadena, TX (b) Production of aluminum alkyls, orthoalkylated anilines, refinery catalysts and other specialty chemicals; refinery catalysts regeneration services and research and development activities Owned Santa Cruz, Brazil Production of catalysts, research and product development activities Owned (c) Takaishi City, Osaka, Japan Production of aluminum alkyls Owned (c) (a) See below for further discussion of these significant mineral extraction facilities.
Biggest changeLocation Principal Use Owned/Leased Energy Storage Chengdu, China Production of lithium carbonate and technical and battery-grade lithium hydroxide Owned Greenbushes, Australia (a) Production of lithium spodumene minerals and lithium concentrate Owned (c) Kemerton, Australia Production of lithium carbonate and technical and battery-grade lithium hydroxide Owned Kings Mountain, NC Production of technical and battery-grade lithium hydroxide, lithium salts and battery-grade lithium metal products Owned La Negra, Chile Production of technical and battery-grade lithium carbonate and lithium chloride Owned Qinzhou, China Production of lithium carbonate and technical and battery-grade lithium hydroxide Owned Salar de Atacama, Chile (a) Production of lithium brine and potash Owned (d) Silver Peak, NV (a) Production of lithium brine, technical-grade lithium carbonate and lithium hydroxide Owned Wodgina, Australia (a) Production of lithium spodumene minerals and lithium concentrate Owned and leased (c) Xinyu, China Production of lithium carbonate and technical and battery-grade lithium hydroxide Owned Specialties Baton Rouge, LA Research and product development activities, and production of fire safety solutions Leased Langelsheim, Germany Production of butyllithium, lithium chloride, specialty products, lithium hydrides, cesium and special metals Owned Magnolia, AR (a) Production of fire safety solutions, bromine, inorganic bromides, agricultural intermediates and tertiary amines Owned New Johnsonville, TN Production of butyllithium and specialty products Owned Safi, Jordan (a) Production of bromine and derivatives and fire safety solutions Owned and leased (c) Taichung, Taiwan Production of butyllithium Owned Twinsburg, OH Production of bromine-activated carbon Leased Ketjen Amsterdam, the Netherlands Production of refinery catalysts, research and product development activities Owned Bitterfeld, Germany Refinery catalyst regeneration, rejuvenation, and sulfiding Owned (c) La Voulte, France Refinery catalysts regeneration and treatment, research and development activities Owned (c) 29 Albemarle Corporation and Subsidiaries Location Principal Use Owned/Leased McAlester, OK Refinery catalyst regeneration, rejuvenation, pre-reclaim burn off, as well as specialty zeolites and additives marketing activities Owned (c) Niihama, Japan Production of refinery catalysts Leased (c) Pasadena, TX (b) Production of aluminum alkyls, orthoalkylated anilines, refinery catalysts and other specialty chemicals; refinery catalysts regeneration services and research and development activities Owned Santa Cruz, Brazil Production of catalysts, research and product development activities Owned (c) Takaishi City, Osaka, Japan Production of aluminum alkyls Owned (c) (a) See below for further discussion of these significant mineral extraction facilities.
On October 31, 2019, we completed the acquisition of a 60% interest in this hard rock lithium mine project and formed an unincorporated joint venture with MRL, named MARBL. We formed MARBL for the exploration, development, mining, processing and production of lithium and other minerals (other than iron ore and tantalum) from the Wodgina Project.
On October 31, 2019, we completed the acquisition of a 60% interest in this hard rock lithium mine project and formed an unincorporated joint venture with MRL, named MARBL. We formed MARBL for the exploration, development, mining, processing and production of lithium and other minerals (other than iron ore and tantalum) from Wodgina.
The facilities at the Salar de Atacama consist of extraction wells, evaporation and concentration ponds, leaching plants, a potash plant, a drying plant, salar yield improvement plant, services and general areas, including salt stockpiles, as well as a fleet of owned and leased equipment. In addition, the site includes administrative offices, an operations building and a laboratory.
The facilities at the Salar de Atacama consist of extraction wells, evaporation and concentration ponds, leaching plants, a potash plant, a drying plant, a salar yield improvement plant, services and general areas, including salt stockpiles, as well as a fleet of owned and leased equipment. In addition, the site includes administrative offices, an operations building and a laboratory.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. • Given the dynamic reserve versus the static resource, a direct measurement of resources post-reserve extraction is not practical.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. • Given the dynamic reserve versus the static resource, a direct measurement of resources post-reserve extraction is not practical.
Therefore, as a simplification, to calculate mineral resources, exclusive of reserves, the quantity of lithium pumped in the life of mine plan was subtracted from the overall resource without modification to lithium concentration.
Therefore, as a simplification, to calculate mineral resources, exclusive of reserves, the quantity of lithium pumped in the life of mine plan was subtracted from the overall resource without modification to lithium concentration.
This is a 10% premium to the price utilized for reserve reporting purposes.
This is a 10% premium to the price utilized for reserve reporting purposes.
As only approximately one percent of the available resource is consumed from the Dead Sea, as noted above, the reserve estimate is based on the amount the JBC plant can produce over until the end of 2058, when the APC concession agreement ends.
As only approximately one percent of the available resource is consumed from the Dead Sea, as noted above, the reserve estimate is based on the amount the JBC plant can produce over until the end of 2058, when the APC concession agreement ends.
Additional information about key assumptions and parameters relating to the lithium mineral resources and reserves at the Greenbushes facility is discussed in sections 11 and 12, respectively, of the Greenbushes technical report summary. 35 Albemarle Corporation and Subsidiaries Wodgina, Australia The Wodgina property, which includes a hard rock, open pit mine (latitude -21° 11' 25"S, longitude 118° 40' 25"E ) is located approximately 110 km south-southeast of Port Hedland, Western Australia between the Turner and Yule Rivers.
Additional information about key assumptions and parameters relating to the lithium mineral resources and reserves at the Greenbushes facility is discussed in sections 11 and 12, respectively, of the Greenbushes technical report summary. 38 Albemarle Corporation and Subsidiaries Wodgina, Australia The Wodgina property, which includes a hard rock, open pit mine (latitude -21° 11' 25"S, longitude 118° 40' 25"E ) is located approximately 110 km south-southeast of Port Hedland, Western Australia between the Turner and Yule Rivers.
See risk factor - “Our inability to acquire or develop additional reserves that are economically viable could have a material adverse effect on our future profitability,” in Item 1A.
See risk factor - “Our inability to acquire or develop additional reserves that are economically viable could have a material adverse effect on our future profitability,” in Item 1A. Risk Factors.
Additional information about key assumptions and parameters relating to the lithium mineral resources and reserves at the Salar de Atacama facility is discussed in sections 11 and 12, respectively, of the Salar de Atacama technical report summary. 41 Albemarle Corporation and Subsidiaries Silver Peak, Nevada The Silver Peak site (latitude 37.751773°N, longitude 117.639027°W) is located in a rural area approximately 30 miles southwest of Tonopah, in Esmeralda County, Nevada.
Additional information about key assumptions and parameters relating to the lithium mineral resources and reserves at the Salar de Atacama facility is discussed in sections 11 and 12, respectively, of the Salar de Atacama technical report summary. 44 Albemarle Corporation and Subsidiaries Silver Peak, Nevada The Silver Peak site (latitude 37.751773°N, longitude 117.639027°W) is located in a rural area approximately 30 miles southwest of Tonopah, in Esmeralda County, Nevada.
Additional information about key assumptions and parameters relating to the lithium mineral resources at the Wodgina facility is discussed in section 11 of the Wodgina technical report summary. 37 Albemarle Corporation and Subsidiaries Salar de Atacama/La Negra, Chile The Salar de Atacama is located in the commune of San Pedro de Atacama, with the operations approximately 100 kilometers to the south of this commune, in the extreme east of the Antofagasta Region and close to the border with the republics of Argentina and Bolivia.
Additional information about key assumptions and parameters relating to the lithium mineral resources at the Wodgina facility is discussed in section 11 of the Wodgina technical report summary. 40 Albemarle Corporation and Subsidiaries Salar de Atacama/La Negra, Chile The Salar de Atacama is located in the commune of San Pedro de Atacama, with the operations approximately 100 kilometers to the south of this commune, in the extreme east of the Antofagasta Region and close to the border with the republics of Argentina and Bolivia.
The truncated production pumping plan remained well above the economic cut-off grade (i.e., the economic cut-off grade did not result in a limiting factor to the estimation of the reserve). ◦ A technical grade lithium carbonate price of $20,000/metric tonne CIF Asia. ◦ Recovery factors for the salar operation increase gradually over the span of 4 years, from the current 40% to the proposed salar yield improvement program 65% recovery in 2025.
The truncated production pumping plan remained well above the economic cut-off grade (i.e., the economic cut-off grade did not result in a limiting factor to the estimation of the reserve). ◦ A technical grade lithium carbonate price of $20,000/metric tonne CIF Asia. ◦ Recovery factors for the salar operation increase gradually over the span of 4 years, from 40% in 2022 to the proposed salar yield improvement program 65% recovery in 2025.
Additional information about key assumptions and parameters relating to the lithium mineral resources and reserves at the Silver Peak facility is discussed in sections 11 and 12, respectively, of the Silver Peak technical report summary. 44 Albemarle Corporation and Subsidiaries Safi, Jordan Our 50% interest in JBC, a consolidated joint venture established in 1999, with operations in Safi, Jordan, acquires bromine that is originally sourced from the Dead Sea.
Additional information about key assumptions and parameters relating to the lithium mineral resources and reserves at the Silver Peak facility is discussed in sections 11 and 12, respectively, of the Silver Peak technical report summary. 47 Albemarle Corporation and Subsidiaries Safi, Jordan Our 50% interest in JBC, a consolidated joint venture established in 1999, with operations in Safi, Jordan, acquires bromine that is originally sourced from the Dead Sea.
Effective January 1, 2017, the Chilean government and Albemarle entered into an annex to the original agreement through which its duration was modified, extending it until the balance of: (a) the original 200,000 metric tons of LME and an additional 262,132 metric tons of LME granted through this 38 Albemarle Corporation and Subsidiaries annex have been exploited, processed, and sold, or (b) on January 1, 2044, whichever comes first.
Effective January 1, 2017, the Chilean government and Albemarle entered into an annex to the original agreement through which its duration was modified, extending it until the 41 Albemarle Corporation and Subsidiaries balance of: (a) the original 200,000 metric tons of LME and an additional 262,132 metric tons of LME granted through this annex have been exploited, processed, and sold, or (b) on January 1, 2044, whichever comes first.
An additional recovery factor of 78% lithium recovery is applied to the lithium carbonate plant. ◦ A fixed brine pumping rate of 20,000 acre feet per year, ramped up from current levels over a period of five years. ◦ Operating cost estimates are based on a combination of fixed brine extraction, G&A and plant costs and variable costs associated with raw brine pumping rate or lithium production rate.
An additional recovery factor of 78% lithium recovery is applied to the lithium carbonate plant. ◦ A fixed brine pumping rate of 20,000 acre feet per year, ramped up from 2022 levels over a period of five years. ◦ Operating cost estimates are based on a combination of fixed brine extraction, G&A and plant costs and variable costs associated with raw brine pumping rate or lithium production rate.
Mineral reserve estimates are not applicable for the Kings Mountain site. (b) Through our Talison joint venture, we own a 49% interest in the Greenbushes mine. We are therefore reporting 49% of Greenbushes’ mineral reserves. (c) The concentration of bromine at the Magnolia site varies based on the physical location of the field and can range over 6,000 mg/L.
Mineral reserve estimates are not applicable for the Kings Mountain site. (b) Through our Windfield joint venture, we own a 49% interest in the Greenbushes mine. We are therefore reporting 49% of Greenbushes’ mineral reserves. (c) The concentration of bromine at the Magnolia site varies based on the physical location of the field and can range over 6,000 mg/L.
Actual surface disturbance associated with the operations is 7,390 acres, primarily associated with the evaporation ponds. The manufacturing and administrative activities are confined to an area approximately 20 acres in size. 42 Albemarle Corporation and Subsidiaries We extract lithium brine from our Silver Peak site through substantially the same evaporation process we use at the Salar de Atacama.
Actual surface disturbance associated with the operations is 7,390 acres, primarily associated with the evaporation ponds. The manufacturing and administrative activities are confined to an area approximately 20 acres in size. 45 Albemarle Corporation and Subsidiaries We extract lithium brine from our Silver Peak site through substantially the same evaporation process we use at the Salar de Atacama.
Additional information about key assumptions and parameters relating to the bromine mineral resources and reserves at the Safi facility is discussed in sections 11 and 12, respectively, of the Safi technical report summary. 46 Albemarle Corporation and Subsidiaries Magnolia, Arkansas Magnolia is located in the southwest Arkansas, north of the center of Columbia County, approximately 50 miles east of Texarkana and 135 miles south of Little Rock.
Additional information about key assumptions and parameters relating to the bromine mineral resources and reserves at the Safi facility is discussed in sections 11 and 12, respectively, of the Safi technical report summary. 49 Albemarle Corporation and Subsidiaries Magnolia, Arkansas Magnolia is located in the southwest Arkansas, north of the center of Columbia County, approximately 50 miles east of Texarkana and 135 miles south of Little Rock.
JBC extracts the bromide-rich, “carnallite-free” brine through a pumping station. This brine feeds the bromine and magnesium plants. There is no exploration as typically conducted for the characterization of a mineral deposit. Infrastructure and facilities to support the operation of the bromine production plant at the Safi site is compact and contained in an approximately 33 ha area.
JBC extracts the bromide-rich, “carnallite-free” brine through a pumping station. This brine feeds the bromine and magnesium plants. There is no exploration as typically conducted for the characterization of a mineral deposit. Infrastructure and facilities to support the operation of the bromine production plant at the Safi site is compact and contained in an approximately 33 hectare area.
The 10% premium applied to the resource versus the reserve was selected to generate a resource larger than the reserve, ensuring the resource fully encompassed the reserve while still maintaining reasonable prospect for eventual economic extraction. ◦ Recovery factors for the salar operation increase gradually over the span of 4 years, from the current 40% to the proposed salar yield improvement program 65% recovery in 2025.
The 10% premium applied to the resource versus the reserve was selected to generate a resource larger than the reserve, ensuring the resource fully encompassed the reserve while still maintaining reasonable prospect for eventual economic extraction. ◦ Recovery factors for the salar operation increase gradually over the span of 4 years, from 40% in 2022 to the proposed salar yield improvement program 65% recovery in 2025.
Average life of mine operating costs is calculated at approximately $6,200/metric tonne lithium carbonate CIF North Carolina. ◦ Sustaining capital costs are included in the cut-off grade calculation and include a fixed component at $7.0 million per year and an additional component tied to the estimated number of wells replaced per year and other planned capital programs. • Mineral reserve tonnage, grade and mass yield have been rounded to reflect the accuracy of the estimate (thousand tonnes), and numbers may not add due to rounding.
Average life of mine operating costs is calculated at approximately $6,200/metric tonne LC CIF North Carolina. ◦ Sustaining capital costs are included in the cut-off grade calculation and include a fixed component at $7.0 million per year and an additional component tied to the estimated number of wells replaced per year and other planned capital programs. • Mineral reserve tonnage, grade and mass yield have been rounded to reflect the accuracy of the estimate (thousand tonnes), and numbers may not add due to rounding.
The Silver Peak mineral resources, exclusive of reserves, estimates with depletion from production from the effective date of the report through December 31, 2022 are summarized in the following table: Amount (‘000s metric tonnes) Concentration (mg/L) Measured mineral resources 14 153 Indicated mineral resources 36 144 Measured and Indicated mineral resources 50 146 Inferred mineral resources 90 121 • Mineral resources are reported exclusive of mineral reserves.
The Silver Peak mineral resources, exclusive of reserves, estimates with depletion from production from the effective date of the report through December 31, 2023 are summarized in the following table: Amount (‘000s metric tonnes) Concentration (mg/L) Measured mineral resources 14 153 Indicated mineral resources 36 144 Measured and Indicated mineral resources 50 146 Inferred mineral resources 90 121 • Mineral resources are reported exclusive of mineral reserves.
JBC processes the bromine at its facilities into a variety of end products. The JBC operation (latitude 31°8'34.85"N , longitude 35°31'34.68"E ) is located in Safi, Jordan, and is located on a 26-ha area on the southeastern edge of the Dead Sea, about 6 kilometers north of the of the APC plant.
JBC processes the bromine at its facilities into a variety of end products. The JBC operation (latitude 31°8'34.85"N , longitude 35°31'34.68"E ) is located in Safi, Jordan, and is located on a 26-hectare area on the southeastern edge of the Dead Sea, about 6 kilometers north of the of the APC plant.
There is an estimated 900 million tonnes of bromine in the Dead Sea. 45 Albemarle Corporation and Subsidiaries Mining methods consist of all activities necessary to extract brine from the Dead Sea and extract Bromine. The low rainfall, low humidity and high temperatures in the Dead Sea area provide ideal conditions for recovering potash from the brine by solar evaporation.
There is an estimated 900 million tonnes of bromine in the Dead Sea. 48 Albemarle Corporation and Subsidiaries Mining methods consist of all activities necessary to extract brine from the Dead Sea and extract Bromine. The low rainfall, low humidity and high temperatures in the Dead Sea area provide ideal conditions for recovering potash from the brine by solar evaporation.
RPS Energy Canada Ltd (“RPS”), a third-party firm comprising mining experts in accordance with Item 1302(b)(1) of Regulation S-K, served as the QP and prepared the estimates of bromine mineral resources and reserves at the Safi facility, with an effective date of December 31, 2022.
RPS Energy Canada Ltd (“RPS”), a third-party firm comprising mining experts in accordance with Item 1302(b)(1) of Regulation S-K, served as the QP and prepared the estimates of bromine mineral resources and reserves at the Safi facility, with an effective date of December 31, 2023.
The mineral reserve estimate attributable to Albemarle’s 50% interest in its JBC joint venture is approximately 2.38 million metric tonnes of bromine from the Dead Sea. This estimate is based on the time available under the concession agreement with the Hashemite Kingdom of Jordan and the processing capability of the JBC plant.
The mineral reserve estimate attributable to Albemarle’s 50% interest in its JBC joint venture is approximately 2.07 million metric tonnes of bromine from the Dead Sea. This estimate is based on the time available under the concession agreement with the Hashemite Kingdom of Jordan and the processing capability of the JBC plant.
All bromine reserves reported by Albemarle for the JBC project are classified as proven mineral reserves. The mineral reserve estimate for the Safi, Jordan bromine site attributable to Albemarle’s 50% interest in its JBC joint venture is approximately 2.38 million metric tonnes of bromine from the Dead Sea.
All bromine reserves reported by Albemarle for the JBC project are classified as proven mineral reserves. The mineral reserve estimate for the Safi, Jordan bromine site attributable to Albemarle’s 50% interest in its JBC joint venture is approximately 2.07 million metric tonnes of bromine from the Dead Sea.
(“SRK”), a third-party firm comprising mining experts in accordance with Item 1302(b)(1) of Regulation S-K, served as the QP and prepared the estimates of lithium mineral resources and reserves at the Greenbushes facility, with an effective date of December 31, 2022.
(“SRK”), a third-party firm comprising mining experts in accordance with Item 1302(b)(1) of Regulation S-K, served as the QP and prepared the estimates of lithium mineral resources and reserves at the Greenbushes facility, with an effective date of December 31, 2023.
The following table provides a summary of our mineral reserves at December 31, 2022. The below mineral reserve amounts are rounded and shown in thousands of metric tonnes. The amounts represent Albemarle’s attributable portion based on ownership percentages noted above.
The following table provides a summary of our mineral reserves at December 31, 2023. The below mineral reserve amounts are rounded and shown in thousands of metric tonnes. The amounts represent Albemarle’s attributable portion based on ownership percentages noted above.
Average life of mine operating costs is calculated at approximately $6,200/metric tonne lithium carbonate CIF North Carolina. 43 Albemarle Corporation and Subsidiaries ◦ Sustaining capital costs are included in the cut-off grade calculation and include a fixed component at $7.0 million per year and an additional component tied to the estimated number of wells replaced per year and other planned capital programs. • Mineral Resources tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
Average life of mine operating costs is calculated at approximately $6,200/metric tonne lithium carbonate CIF North Carolina. ◦ Sustaining capital costs are included in the cut-off grade calculation and include a fixed component at $7.0 million per year and an additional component tied to the estimated number of wells replaced per year and other planned capital programs. • Mineral Resources tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
Incremental ore mining costs are the costs associated with the run-of-mine loader, stockpile rehandling, grade control assays and rockbreaker. ◦ The price, cost and mass yield parameters produce a calculated economic cutoff grade of 0.344% Li 2 O.
Incremental ore mining costs are the costs associated with the run-of-mine loader, stockpile rehandling, grade control assays and rockbreaker ◦ The price, cost and mass yield parameters produce a calculated economic cutoff grade of 0.606% Li 2 O.
See section 3 of the Greenbushes technical report summary, filed as Exhibit 96.1 to this report, for a listing of tenements held by the Greenbushes site. Talison holds the mining rights for all lithium minerals on these tenements. The operating open pit lithium mining and processing plant area covers approximately 2,000 hectares comprising three mining leases.
See section 3 of the Greenbushes technical report summary, filed as Exhibit 96.1 to this report, for a listing of tenements held by the Greenbushes site. Talison holds the mining rights for all lithium minerals on these tenements. The operating open pit lithium mining and processing plant area covers approximately 3,500 hectares comprising three mining leases.
Exploration drilling at Greenbushes has been ongoing for over 40 years, including drilling in 2020, using reverse circulation and diamond drill holes. Three lithium mineral processing plants are currently operating on the Greenbushes site, two chemical grade plants and a technical grade plant. Tailings are discharged to the tailings storage facility without the need for any neutralization process.
Exploration drilling at Greenbushes has been ongoing for over 40 years using reverse circulation and diamond drill holes. Three lithium mineral processing plants are currently operating on the Greenbushes site, two chemical grade plants and a technical grade plant. Tailings are discharged to the tailings storage facility without the need for any neutralization process.
The production pumping plan was truncated due to technical uncertainty inherent in long-term production modeling and remained well above the economic cutoff grade (i.e., the economic cutoff grade did not result in a limiting factor to the estimation of the reserve). ◦ A technical grade lithium carbonate price of US$20,000/metric tonne CIF North Carolina. ◦ Recovery factors for the wellfield are = -206.23*(Li wellfield feed)2 +7.1903*(wellfield Li feed)+0.4609.
The production pumping plan was truncated due to technical uncertainty inherent in long-term production modeling and remained well above the economic cut-off grade (i.e., the economic cut-off grade did not result in a limiting factor to the estimation of the reserve). ◦ A technical grade lithium carbonate price of $20,000/metric tonne CIF North Carolina. ◦ Recovery factors for the wellfield are = -206.23*(Li wellfield feed)^2 +7.1903*(wellfield Li feed) + 0.4609.
Conversion to LCE is 0.1878 metric tonne of lithium metal to 1 metric tonne of LCE. (b) Production from Greenbushes represents 49% of production of the Greenbushes mine which is attributable to the Company’s interest in the Talison joint venture.
Conversion to LCE is 0.1878 metric tonne of lithium metal to 1 metric tonne of LCE. (b) Production from Greenbushes represents 49% of production of the Greenbushes mine, which is attributable to the Company’s interest in the Windfield joint venture.
SRK notes actual economic cutoff grade is lower, but it is the QP’s opinion to use a 0.7% Li 2 O cutoff grade to align with current site practices. ◦ An overall 42° (east side) and 46° (west side) pit slope angle, 0% mining dilution, and 100% mining recovery. ◦ Resources were reported above the assigned 0.7% Li 2 O cutoff grade and are constrained by an optimized 0.95 revenue factor pit shell. ◦ No infrastructure movement capital costs have been added to the optimization. • Mineral resources tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
SRK notes actual economic cutoff grade is lower, but it is the QP’s opinion to use a 0.7% Li 2 O cutoff grade to align with current site practices. ◦ An overall 40° (east side) and 47° (west side) pit slope angle, 0% mining dilution, and 100% mining recovery. ◦ Mineral resources were reported above the assigned 0.7% Li 2 O cutoff grade and are constrained by an optimized 0.90 revenue factor pit shell. ◦ No infrastructure movement capital costs have been added to the optimization. • Mineral resources tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
When possible, resources and data from public information and generally accepted industry sources, such as governmental resource agencies, were used to develop these estimations. 31 Albemarle Corporation and Subsidiaries Each site has developed quality control and quality assurance (“QC/QA”) procedures, which were reviewed by the QP, to ensure the process for developing mineral resource and reserve estimates were sufficiently accurate.
When possible, resources and data from public information and generally accepted industry sources, such as governmental resource agencies, were used to develop these estimations. Each site has developed quality control and quality assurance (“QC/QA”) procedures, which were reviewed by the QP, to ensure the process for developing mineral resource and reserve estimates were sufficiently accurate.
However, due to the internal constraints of the current operations, an elevated mineral reserves cutoff grade of 0.7% Li 2 O has been applied. ◦ The cutoff grade of 0.7% Li 2 O was applied to reserves that are constrained by the ultimate pit design and are detailed in a yearly mine schedule. ◦ Stockpile reserves have been previously mined and are reported at a 0.7% Li 2 O cutoff grade. • Waste tonnage within the reserve pit is 701.5 million metric tonnes at a strip ratio of 4.58:1 (waste to ore – not including reserve stockpiles) • Mineral reserve tonnage, grade and mass yield have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
However, due to the internal constraints of the current operations, an elevated Mineral Reserves cutoff grade of 0.7% Li 2 O has been applied. ◦ The cutoff grade of 0.7% Li 2 O was applied to reserves that are constrained by the ultimate pit design and are detailed in a yearly mine schedule. ◦ Stockpile reserves have been previously mined and are reported at a 0.7% Li 2 O cutoff grade. • Waste tonnage within the reserve pit is 716.6 million metric tonnes at a strip ratio of 4.93:1 (waste to ore – not including mineral reserve stockpiles). • Mineral reserve tonnage, grade and mass yield have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
The bromine concentration is more than twice as high as that found in normal evaporated sea water. The bromine mineralization of the brine is distributed throughout the porous intervals of the upper and middle Smackover on the property. The strong permeability and porosity of the Smackover grainstones provide excellent continuity of the bromine mineralization within the brine.
The bromine concentration is more than twice as high as that found in normal evaporated seawater. The bromine mineralization of the brine is distributed throughout the porous intervals of the upper and middle Smackover on the property. The strong permeability and porosity of the Smackover grainstones provide excellent continuity of the bromine mineralization within the brine.
The Dead Sea is the world’s saltiest natural lake, containing high concentrations of ions compared to that of regular sea water and an unusually high amount of magnesium and bromine.
The Dead Sea is the world’s saltiest natural lake, containing high concentrations of ions compared to that of regular seawater and an unusually high amount of magnesium and bromine.
A summary of the Salar de Atacama facility’s lithium mineral resources, exclusive of reserves, and reserves as of December 31, 2022 are shown in the following tables. SRK served as the QP and prepared the estimates of lithium mineral resources and reserves at the Salar de Atacama facility, with an effective date of August 31, 2022.
A summary of the Salar de Atacama facility’s lithium mineral resources, exclusive of reserves, and reserves as of December 31, 2023 are shown in the following tables. SRK served as the QP and prepared the estimates of lithium mineral resources (exclusive of reserves) and reserves at the Salar de Atacama facility, with an effective date of December 31, 2023.
Bromine concentration used to calculate the reserve estimate from the Dead Sea was approximately 8,890 ppm based on historical pumping. Mineral resource and reserve estimates were prepared by a QP with an effective date provided in the individual technical report summaries referenced in Exhibits 96.1 to 96.6 to this report.
Bromine concentration used to calculate the reserve estimate from the Dead Sea was approximately 7,645 ppm based on historical pumping. Mineral resource and reserve estimates were prepared by a QP with an effective date provided in the individual technical report summaries referenced in Exhibits 96.1 to 96.6 to this report.
We believe that our production facilities, research and development facilities, and sales and administrative offices are generally well maintained, effectively used and are adequate to operate our business. During 2022, the Company’s manufacturing plants operated at approximately 84% capacity, in the aggregate. Set forth below is information regarding our production facilities operated by us and our affiliates.
We believe that our production facilities, research and development facilities, and sales and administrative offices are generally well maintained, effectively used and are adequate to operate our business. During 2023, the Company’s manufacturing plants operated at approximately 75% capacity, in the aggregate. Set forth below is information regarding our production facilities operated by us and our affiliates.
A copy of the QP’s amended technical report summary with respect to the bromine mineral resource and reserve estimates at the Safi facility, dated February 15, 2023, is filed as Exhibit 96.5 to this report. The feedstock is drawn from the Dead Sea, a nonconventional reservoir owned by the nations of Israel and Jordan.
A copy of the QP’s amended technical report summary with respect to the bromine mineral resource and reserve estimates at the Safi facility, dated February 14, 2024, is filed as Exhibit 96.5 to this report. The feedstock is drawn from the Dead Sea, a nonconventional reservoir owned by the nations of Israel and Jordan.
Bromine concentration used to calculate the reserve estimate from the Dead Sea was approximately 8,890 ppm based on historical pumping. The cut-off grade of the Albemarle bromine operations has been estimated to be at 1,000 ppm. The bromide ion concentration in the brine extracted which feeds the bromine plants, significantly exceeds the selected cut-off grade.
Bromine concentration used to calculate the reserve estimate from the Dead Sea was approximately 7,645 ppm based on historical pumping. The cut-off grade of the Albemarle bromine operations has been estimated to be at 1,000 ppm. The bromide ion concentration in the brine extracted which feeds the bromine plants, significantly exceeds the selected cut-off grade.
Inferred mineral resources are estimates based on limited geological evidence and sampling and have a too high of a degree of uncertainty as to their existence to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.
Inferred mineral resources are estimates based on limited geological evidence and sampling and have a too 30 Albemarle Corporation and Subsidiaries high of a degree of uncertainty as to their existence to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.
The measured resource of bromide ion attributable to Albemarle’s 50% interest in its JBC joint venture is estimated to be approximately 178.3 million metric tonnes. JBC is extracting approximately 1 percent of the bromine available in Jordan’s share of the Dead Sea. Bromide concentration in the Dead Sea is estimated to average approximately 5,000 parts per million (“ppm”).
The measured resource of bromide ion attributable to Albemarle’s 50% interest in its JBC joint venture is estimated to be approximately 175.69 million metric tonnes. JBC is extracting approximately 1 percent of the bromine available in Jordan’s share of the Dead Sea. Bromide concentration in the Dead Sea is estimated to average approximately 5,000 parts per million (“ppm”).
The QP and management agree on the reasonableness of the criteria for the purposes of estimating resources and reserves. Calculations using these criteria are reviewed and validated by the QP. Estimations and assumptions were developed independently for each significant mineral location. All estimates require a combination of historical data and key assumptions and parameters.
The QP and management agree on the reasonableness of the criteria for the purposes of estimating resources and reserves. Calculations using these criteria are reviewed and validated by the QP. 34 Albemarle Corporation and Subsidiaries Estimations and assumptions were developed independently for each significant mineral location. All estimates require a combination of historical data and key assumptions and parameters.
Production of spodumene concentrate from the first and second trains at the Wodgina mine was achieved in May and July of this year, respectively, after it had been idled following its acquisition in 2019.
Production of spodumene concentrate from the first and second trains at the Wodgina mine was achieved in May and July of 2022, respectively, after it had been idled following its acquisition in 2019.
(b) The Pasadena, Texas location includes three separate manufacturing plants which are owned, primarily utilized by Catalysts, including one plant that is owned by an unconsolidated joint venture. (c) Owned or leased by joint venture.
(b) The Pasadena, Texas location includes three separate manufacturing plants, primarily utilized by Ketjen, that are owned, including one plant that is owned by an unconsolidated joint venture. (c) Owned or leased by joint venture.
An additional recovery factor of 78% lithium recovery is applied to the lithium carbonate plant. ◦ A fixed brine pumping rate of 20,000 acre feet per year, ramped up from current levels over a period of five years. ◦ Operating cost estimates are based on a combination of fixed brine extraction, G&A and plant costs and variable costs associated with raw brine pumping rate or lithium production rate.
An additional recovery factor of 78% lithium recovery is applied to the lithium carbonate plant. ◦ A fixed brine pumping rate of 20,000 acre feet per year, ramped up from 2022 levels over a period of five years. 46 Albemarle Corporation and Subsidiaries ◦ Operating cost estimates are based on a combination of fixed brine extraction, G&A and plant costs and variable costs associated with raw brine pumping rate or lithium production rate.
The average life of mine mass yield for the technical grade plant is 37.5%. ◦ Although Greenbushes produces a technical grade product from the current operation, it is assumed that the reserves reported herein will be sold as a chemical grade product.
The average life of mine mass yield for the technical grade plant is 38.0%. ◦ Although Greenbushes produces a technical grade product from the current operation, it is assumed that the reserves reported herein will be sold as a chemical grade product.
It cannot be assumed that all or any part of an inferred mineral resources can be upgraded to measured or indicated mineral resources. • Metallurgical recovery of lithium has been estimated on a block basis at a consistent 65% based on documentation from historical plant production. • To demonstrate reasonable prospects for eventual economic extraction of Mineral Resources, a cut-off grade of 0.5% Li2O based on metal recoverability assumptions, long-term price assumptions of $584 per metric tonne, variable mining costs averaging $3.40/metric tonne, processing costs and G&A costs totaling $23/metric tonne. • The mineral resources are constrained by an economic pit shell using an overall 43° pit slope angle, 0% mining dilution, and 100% mining recovery. • There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources based on the level of study completed for this property.
It cannot be assumed that all or any part of an inferred mineral resources can be upgraded to measured or indicated mineral resources. • Metallurgical recovery of lithium has been estimated on a block basis at a consistent 65% based on documentation from historical plant production. • To demonstrate reasonable prospects for eventual economic extraction of Mineral Resources, a cut-off grade of 0.5% Li2O based on metal recoverability assumptions, long-term price assumptions of $584 per metric tonne, variable mining costs averaging $3.40/metric tonne, processing costs and G&A costs totaling $23/metric tonne. • Mass yield is defined as (Li 2 O%*metallurgical recovery) / concentrate grade where Li 2 O% = lithium oxide grade in percent, metallurgical recovery = 65% and concentrate grade = 6%. • The mineral resources are constrained by an economic pit shell using an overall 43° pit slope angle, 0% mining dilution, and 100% mining recovery. • There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources based on the level of study completed for this property.
Therefore, it is conservatively assumed that concentrate produced by the technical grade plant will be sold at the chemical grade product price ◦ Derivation of economic cutoff grade for reserves is based on mine gate pricing of $1,381/metric tonne of 6% Li 2 O concentrate.
Therefore, it is conservatively assumed that concentrate produced by the technical grade plant will be sold at the chemical grade product price. ◦ Derivation of economic cutoff grade for reserves is based on mine gate pricing of $1,383/t of 6% Li 2 O concentrate.
As of December 31, 2022, our 49% ownership interest of the gross asset value of the facilities at the Greenbushes site was approximately $471.7 million. Greenbushes is currently constructing a new chemical grade plant with a target completion in 2025 and is developing plans for a fourth chemical grade plant to be constructed in 2027.
As of December 31, 2023, our 49% ownership interest of the gross asset value of the facilities at the Greenbushes site was approximately $803.5 million. Greenbushes is currently constructing a new chemical grade plant with a target completion in 2025 and is developing plans for a fourth chemical grade plant to be constructed in 2027.
See section 3 of the Wodgina technical report summary, filed as Exhibit 96.2 to this report, for a listing of all mining and exploration land tenements, which are in good standing and no known impediments exist. Certain 36 Albemarle Corporation and Subsidiaries tenements are due for renewal in 2026 and another in 2030.
See section 3 of the Wodgina technical report summary, filed as Exhibit 96.2 to this report, for a listing of all mining and exploration land tenements, which are in good standing and without any known impediments. Certain 39 Albemarle Corporation and Subsidiaries tenements are due for renewal in 2026 and another in 2030.
We consider the condition of all of our plants, facilities and equipment to be suitable and adequate for the businesses we conduct, and we maintain them regularly. As of December 31, 2022, the combined gross asset value of our facilities at the Salar de Atacama and in La Negra, Chile (not inclusive of construction in process) was approximately $1,673.5 million.
We consider the condition of all of our plants, facilities and equipment to be suitable and adequate for the businesses we conduct, and we maintain them regularly. As of December 31, 2023, the combined gross asset value of our facilities at the Salar de Atacama and in La Negra, Chile (not inclusive of construction in process) was approximately $1.9 billion.
The increase in measured mineral resources was driven by evaporation in the Dead Sea, partially offset by the end date of the forecast remained unchanged due to the concession agreement and depletion during 2022. All bromine reserves reported by Albemarle for the JBC project are classified as proven mineral reserves.
The decrease in measured mineral resources was driven by depletion and evaporation in the Dead Sea during 2023. The end date of the forecast remained unchanged due to the concession agreement. All bromine reserves reported by Albemarle for the JBC project are classified as proven mineral reserves.
We are therefore reporting 49% of Greenbushes’ mineral resources. (b) Through our MARBL joint venture, we own a 60% interest in the Wodgina project. We are therefore reporting 60% of Wodgina’s mineral resources.
We are therefore reporting 49% of Greenbushes’ mineral resources. (b) Through our MARBL joint venture, we own a 50% interest in Wodgina. We are therefore reporting 50% of Wodgina’s mineral resources.
The Wodgina mineral resources, exclusive of reserves, estimates with depletion from production from the effective date of the report through December 31, 2022 are summarized in the following table: Amount (‘000s metric tonnes) Grade (Li 2 O%) Indicated mineral resources 12,600 1.36% Inferred mineral resources 98,300 1.12% • The summary mineral resources attributable tonnes reflects Albemarle’s 60% ownership percentage in the Wodgina project. • All significant figures are rounded to reflect the relative accuracy of the estimates. • The mineral resource estimate has been classified in accordance with SEC S-K 1300 guidelines and definitions. • The Cassiterite Deposit comprises the historically mined Mt.
The Wodgina mineral resources, exclusive of reserves, estimates with depletion from production from the effective date of the report through December 31, 2023 are summarized in the following table: Amount (‘000s metric tonnes) Grade (Li 2 O%) Indicated mineral resources 8,800 1.31% Inferred mineral resources 81,700 1.12% • The summary mineral resources attributable tonnes reflects Albemarle’s 50% ownership percentage in Wodgina. • All significant figures are rounded to reflect the relative accuracy of the estimates. • The mineral resource estimate has been classified in accordance with SEC S-K 1300 guidelines and definitions. • The Cassiterite Deposit comprises the historically mined Mt.
As of December 31, 2022, our 50% ownership interest of the gross asset value of the facilities at the Safi, Jordan site was approximately $222.3 million. A summary of the Safi facility’s bromine mineral resources and reserves as of December 31, 2022 is provided below.
As of December 31, 2023, our 50% ownership interest of the gross asset value of the facilities at the Safi, Jordan site was approximately $243.7 million. A summary of the Safi facility’s bromine mineral resources and reserves as of December 31, 2023 is provided below.
There are no mineral resource estimates at the Magnolia, AR bromine extraction site. All bromine mineral accumulations of economic interest and with reasonable prospects for eventual economic extraction within the Magnolia production lease area are either currently on production or subject to an economically viable future development plan and are classified as mineral reserves.
All bromine mineral accumulations of economic interest and with reasonable prospects for eventual economic extraction within the Magnolia production lease area are either currently on production or subject to an economically viable future development plan and are classified as mineral reserves.
The Silver Peak reserve estimates with depletion from production from the effective date of the report through December 31, 2022 are summarized in the following table: Amount (‘000s metric tonnes) Concentration (mg/L) Proven mineral reserves: In Situ 12 94 In Process 1 104 Probable mineral reserves: In Situ 56 95 Total mineral reserves: In Situ 68 95 In Process 1 104 • In process reserves quantify the prior 24 months of pumping data and reflect the raw brine, at the time of pumping.
The Silver Peak reserve estimates with depletion from production from the effective date of the report through December 31, 2023 are summarized in the following table: Amount (‘000s metric tonnes) Concentration (mg/L) Proven mineral reserves: In Situ 12 93 In Process 1 101 Probable mineral reserves: In Situ 54 95 Total mineral reserves: In Situ 66 95 In Process 1 101 • In process reserves quantify the prior 24 months of pumping data and reflect the raw brine, at the time of pumping.
The relevant technical information supporting mineral resources for each material property is included in the “Material Individual Properties” section below, as well as in the technical report summaries filed as Exhibits 96.1 to 96.6 to this report. 29 Albemarle Corporation and Subsidiaries Measured Mineral Resources Indicated Mineral Resources Measured and Indicated Mineral Resources Inferred Mineral Resources Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Lithium - Hard Rock: Australia Greenbushes (a) — — 21,800 1.53% 21,800 1.53% 28,300 1.15% Wodgina (b) — — 12,600 1.36% 12,600 1.36% 98,300 1.12% United States Kings Mountain, NC — — 46,816 1.37% 46,816 1.37% 42,869 1.10% Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Lithium - Brine: Chile Salar de Atacama 471 2,390 363 1,943 834 2,159 237 1,617 United States Silver Peak, NV 14 153 36 144 50 146 90 121 (a) Through our Talison joint venture, we own a 49% interest in the Greenbushes mine.
The relevant technical information supporting mineral resources for each material property is included in the “Material Individual Properties” section below, as well as in the technical report summaries filed as Exhibits 96.1 to 96.6 to this report. 32 Albemarle Corporation and Subsidiaries Measured Mineral Resources Indicated Mineral Resources Measured and Indicated Mineral Resources Inferred Mineral Resources Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Lithium - Hard Rock: Australia Greenbushes (a) — — 37,100 1.48% 37,100 1.48% 5,800 1.19% Wodgina (b) — — 8,800 1.31% 8,800 1.31% 81,700 1.12% United States Kings Mountain, NC — — 46,816 1.37% 46,816 1.37% 42,869 1.10% Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Lithium - Brine: Chile Salar de Atacama 471 2,390 363 1,943 834 2,195 237 1,617 United States Silver Peak, NV 14 153 36 144 50 146 90 121 (a) Through our Windfield joint venture, we own a 49% interest in the Greenbushes mine.
The pegmatites are crosscut by mafic dolerite dikes. The Central Lode pegmatite is over 3 kilometers long (north by northwest), up to 300 meters wide (normal to dip), strikes north to north-west and dips moderately to steeply west to south-west.
The Central Lode pegmatite is over 3 kilometers long (north by northwest), up to 300 meters wide (normal to dip), strikes north to north-west and dips moderately to steeply west to south-west.
The bromide ion concentration in the brine extracted which feeds the bromine plants, significantly exceeds the selected cut-off grade. The Safi measured mineral reserves of 178.3 million metric tonnes at December 31, 2022 increased by 1% from 177.5 million metric tonnes at December 31, 2021.
The bromide ion concentration in the brine extracted which feeds the bromine plants, significantly exceeds the selected cut-off grade. The Safi measured mineral reserves of 175.69 million metric tonnes at December 31, 2023 decreased by 1% from 178.3 million metric tonnes at December 31, 2022.
Risk Factors. 27 Albemarle Corporation and Subsidiaries Overview At December 31, 2022, we had the following mineral extraction facilities: Location Business Segment Ownership % Extraction Type Stage Australia Greenbushes Lithium 49% Hard rock Production Wodgina Lithium 60% Hard rock Production (a) Chile Salar de Atacama Lithium 100% Brine Production Jordan Safi (b) Bromine 50% Brine Production United States Kings Mountain, NC Lithium 100% Hard rock Development Magnolia, AR (b) Bromine 100% Brine Production Silver Peak, NV (b) Lithium 100% Brine Production (a) Production of spodumene concentrate at the Wodgina mine resumed in the second quarter of 2022 after it had been idled in 2019, following the acquisition of our the 60% interest in the Wodgina Project.
Overview At December 31, 2023, we had the following mineral extraction facilities: Location Business Segment Ownership % Extraction Type Stage Australia Greenbushes Energy Storage 49% Hard rock Production Wodgina (a) Energy Storage 50% Hard rock Production Chile Salar de Atacama (b) Energy Storage 100% Brine Production Jordan Safi (b) Specialties 50% Brine Production United States Kings Mountain, NC Energy Storage 100% Hard rock Development Magnolia, AR (b) Specialties 100% Brine Production Silver Peak, NV (b) Energy Storage 100% Brine Production (a) Production of spodumene concentrate at the Wodgina mine resumed in the second quarter of 2022 after it had been idled in 2019, following the acquisition of our interest in Wodgina.
Amount (‘000s metric tonnes) Proven mineral reserves 2,419 Probable mineral reserves 565 Total mineral reserves 2,984 • Reserves are reported as bromine, on an in situ basis. • The estimated economic cutoff grade utilized for reserve reporting purposes is 1,000 mg/L bromine, with a bromine price ranging from $3,560 to $6,480 per metric tonne and operating costs ranging from $850 to $1,150 per metric tonne. • Recovery factors for the Magnolia are 75% and 82% for the proven mineral reserves and total mineral reserves, respectively. • The concentration of bromine at the Magnolia site varies based on the physical location of the field and can range up to over 6,000 mg/L.
Amount (‘000s metric tonnes) Proven mineral reserves 2,706 Probable mineral reserves 611 Total mineral reserves 3,317 • Reserves are reported as bromine, on an in situ basis. • The estimated economic cutoff grade utilized for reserve reporting purposes is 1,000 mg/L bromine, with a bromine price ranging from $1,938 to $3,525 per metric tonne and operating costs ranging from $1,328 to $1,992 per metric tonne. • Recovery factors for the Magnolia are 82% and 88% for the proven mineral reserves and total mineral reserves, respectively. • The concentration of bromine at the Magnolia site varies based on the physical location of the field and can range up to over 6,000 mg/L.
SRK served as the QP and prepared the estimates of lithium mineral resources at the Wodgina facility, with an effective date of September 30, 2020. No reserves have been declared at Wodgina.
SRK served as the QP and prepared the estimates of lithium mineral resources at the Wodgina facility, with an effective date of December 31, 2023. No reserves have been declared at Wodgina.
The Safi total mineral reserves of 2.38 million metric tonnes at December 31, 2022 decreased by 3% from 2.45 million metric tonnes at December 31, 2021. The decrease in total mineral reserves was driven by depletion during 2022 and the end date of the forecast remained unchanged due to the concession agreement.
The Safi total mineral reserves of 2.07 million metric tonnes at December 31, 2023 decreased by 13% from 2.38 million metric tonnes at December 31, 2022. The decrease in total mineral reserves was driven by depletion and evaporation in the Dead Sea during 2023. The end date of the forecast remained unchanged due to the concession agreement.
As of December 31, 2022, the gross asset value of our facilities at our Silver Peak site was approximately $77.8 million. A summary of the Silver Peak facility’s lithium mineral resources, exclusive of reserves, and reserves as of December 31, 2022 are shown in the following tables.
As of December 31, 2023, the gross asset value of our facilities at our Silver Peak site was approximately $139.1 million. A summary of the Silver Peak facility’s lithium mineral resources, exclusive of reserves, and reserves as of December 31, 2023 is shown in the following tables.
La Negra is supplied electricity from a local company and has rights to a well in the Peine community for its water supply. We have completed construction of the third lithium carbonate conversion plant in late 2022. The plant has begun a six-month commissioning, qualification process, and ramp up process.
La Negra is supplied electricity from a local company and has rights to a well in the Peine community for its water supply. We completed construction of the third lithium carbonate conversion plant in late 2022.
SRK served as the QP and prepared the estimates of lithium mineral resources (exclusive of reserves) and reserves at the Silver Peak facility, with an effective date of September 30, 2022.
SRK served as the QP and prepared the estimates of lithium mineral resources (exclusive of reserves) and reserves at the Silver Peak facility, with an effective date of December 31, 2023.
As of December 31, 2022, our 60% ownership interest of the gross asset value of the facilities at our Wodgina site was approximately $255.4 million. A summary of the Wodgina facility’s lithium mineral resources as of December 31, 2022 is shown in the following table.
As of December 31, 2023, our 50% ownership interest of the gross asset value of the facilities at our Wodgina site was approximately $271.0 million. A summary of the Wodgina facility’s lithium mineral resources as of December 31, 2023 is shown in the following table.
These reserves represent the first 24 months of feed to the lithium process plant in the economic model. • Proven reserves have been estimated as the lithium mass pumped during the Partial Year 2022 through 2027 of the proposed life of mine plan. • Probable reserves have been estimated as the lithium mass pumped from 2028 until the end of the proposed life of mine plan (2052). • Reserves are reported as lithium metal. • This mineral reserve estimate was derived based on a production pumping plan truncated at the end of year 2052 (i.e., approximately 29.5 years).
These reserves represent the first 24 months of feed to the lithium process plant in the 2022 economic model. • Proven reserves have been estimated as the lithium mass pumped during the years 2024 through 2028 of the proposed life of mine plan. • Probable reserves have been estimated as the lithium mass pumped from 2029 until the end of the proposed life of mine plan (2052). • The ratio of in situ proven to probable reserves has remained consistent through depletion since the development of the reserve model in 2022 with approximately 82% of the reserve designated as Probable and 18% of the reserve designated as Proven. • Reserves are reported as lithium metal. • This mineral reserve estimate was derived based on a production pumping plan truncated at the end of year 2052 (i.e., approximately 29.5 years).
Revenues are based on a forecast bromine price ranging from $3,560 to $6,480 per metric tonne and the operating cost ranges between $341 and $529 per metric tonne . The measured resource of bromide ion attributable to Albemarle’s 50% interest in its JBC joint venture is estimated to be approximately 178.3 million metric tonnes.
Revenues are based on a forecast bromine price ranging from $1,938 to $3,525 per metric tonne and the operating cost ranges between $648 and $972 per metric tonne . The measured resource of bromide ion attributable to Albemarle’s 50% interest in its JBC joint venture is estimated to be approximately 175.69 million metric tonnes.
A copy of the QP’s technical report summary with respect to the lithium mineral resource and reserve estimates at the Greenbushes facility, dated February 14, 2023 is filed as Exhibit 96.1 to this report.
A copy of the QP’s most recent technical report summary with respect to the lithium mineral resource and reserve estimates at the Greenbushes facility, dated February 9, 2024, with an effective date of June 30, 2023, is filed as Exhibit 96.1 to this report.
In 2014, Rockwood acquired a 49% ownership interest in Windfield, which owns 100% of Talison, from Sichuan Tianqi Lithium Industries Inc. This 49% ownership in Windfield was assumed by Albemarle in 2015 as part of the acquisition of Rockwood.
Initial exploration focused largely on tantalum, with the emphasis changing to lithium from around 2000. In 2014, Rockwood acquired a 49% ownership interest in Windfield, which owns 100% of Talison, from Sichuan Tianqi Lithium Industries Inc. This 49% ownership in Windfield was assumed by Albemarle in 2015 as part of the acquisition of Rockwood.
The mine gate price is based on $1,650/metric tonne-conc CIF less $127/metric tonne-conc for government royalty and transportation to China. ◦ Costs estimated in Australian Dollars were converted to U.S. dollars based on an exchange rate of AU$1.00:$0.72. ◦ The economic cutoff grade calculation is based on $2.79/metric tonne-ore incremental ore mining cost, $23.35/metric tonne-ore processing cost, $3.57/metric tonne-ore G&A cost, and $1.88/metric tonne-ore sustaining capital cost.
The mine gate price is based on $1,650/t-conc CIF less $125/t-conc for government royalty and transportation to China. ◦ Costs estimated in Australian Dollars (“AUD”) were converted to U.S. dollars based on an exchange rate of AUD1.00:$0.68. ◦ The economic cutoff grade calculation is based on $2.67/t-ore incremental ore mining cost, $31.90/t-ore processing cost, $9.24/t-ore G&A cost, and $2.35/t-ore sustaining capital cost.
The relevant technical information supporting mineral reserves for each material property is included in the ”Material Individual Properties” section below, as well as the in the technical report summaries referenced in Exhibits 96.1 to 96.6 to this report. 30 Albemarle Corporation and Subsidiaries Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Lithium - Hard Rock (a): Australia Greenbushes (b) — — 77,000 1.91% 77,000 1.91% Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Lithium - Brine: Chile Salar de Atacama 329 2,430 237 2,063 566 2,262 United States Silver Peak, NV 13 95 56 95 69 95 Bromine: United States Magnolia, AR (c) 2,419 565 2,984 (a) The Wodgina mine is at an initial assessment level, and as a result, contains no mineral reserves.
The relevant technical information supporting mineral reserves for each material property is included in the “Material Individual Properties” section below, as well as the in the technical report summaries referenced in Exhibits 96.1 to 96.6 to this report. 33 Albemarle Corporation and Subsidiaries Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Amount (‘000s metric tonnes) Grade (Li 2 O%) Lithium - Hard Rock (a): Australia Greenbushes (b) — — 71,800 1.82% 71,800 1.82% Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Lithium - Brine: Chile Salar de Atacama 321 2,354 210 2,050 531 2,226 United States Silver Peak, NV 14 94 54 95 68 95 Bromine: United States Magnolia, AR (c) 2,706 611 3,317 (a) The Wodgina mine is at an initial assessment level, and as a result, contains no mineral reserves.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

17 edited+11 added−9 removed6 unchanged
Biggest changeNarwold announced that she will retire from the Company, effective April 4, 2023. Melissa Anderson joined Albemarle as Senior Vice President, Chief Human Resources Officer in January 2021. Prior to joining Albemarle, Ms. Anderson served as Executive Vice President, Administration and Chief Human Resources Officer at Duke Energy, an American electric power holding company based in North Carolina.
Biggest changeAnderson served as Executive Vice President, Administration and Chief Human Resources Officer at Duke Energy, an American electric power holding company based in North Carolina, from January 2015 to August 2020. Previous to that role, she held the role of Senior Vice President, Human Resources, for Domtar Corporation in South Carolina.
Johnson has more than 20 years of diverse leadership experience, both domestically and internationally, including having worked extensively in Singapore, Malaysia, Taiwan, Japan and Germany. Prior to joining Albemarle, Mr. Johnson served in several progressive leadership roles with 3M Company.
Netha Johnson joined Albemarle as President, Bromine (now Specialties) global business unit in 2018. Mr. Johnson has more than 20 years of diverse leadership experience, both domestically and internationally, including having worked extensively in Singapore, Malaysia, Taiwan, Japan and Germany. Prior to joining Albemarle, Mr. Johnson served in several progressive leadership roles with 3M Company.
Norris served as President of Health and Nutrition for FMC Corporation. Following FMC’s announcement to acquire DuPont Agricultural Chemical assets, he led the divestiture of FMC Health and Nutrition to DuPont. Previously, Mr. Norris served as Vice President and Global Business Director for FMC Health and Nutrition, and Vice President and Global Business Director for FMC Lithium.
Norris served as President of Health and Nutrition for FMC Corporation from 2015 to November 2017. Following FMC’s announcement to acquire DuPont Agricultural Chemical assets, he led the divestiture of FMC Health and Nutrition to DuPont. Previously, Mr.
He is also a former member of the executive board of Linde AG, a global leader in manufacturing and sales of industrial gases, with responsibility for the Americas, Africa, and the South Pacific. Scott A. Tozier was elected as our Executive Vice President and Chief Financial Officer effective January 2011. Mr.
He is also a former member of the executive board of Linde AG, a global leader in manufacturing and sales of industrial gases, with responsibility for the Americas, Africa, and the South Pacific. Neal R. Sheorey joined Albemarle in November 2023 as Executive Vice President and Chief Financial Officer. Prior to joining Albemarle, Mr.
She also served as Senior Vice President, General Counsel, and Corporate Secretary of Sears Holdings Corporation and as Vice President, General Counsel, and Corporate Secretary for Brunswick Corporation. Before moving in-house, she worked in private practice with Sidley Austin LLP. Ms. Coleman founded the Chicago General Counsel Forum and is a member of the Economic Club of Chicago.
She also served as Senior Vice President, General Counsel, and Corporate Secretary of Sears Holdings Corporation from 2014 to 2017 and as Vice President, General Counsel, and Corporate Secretary for Brunswick Corporation from 2009 to 2014. Before moving in-house, 52 Albemarle Corporation and Subsidiaries she worked in private practice with Sidley Austin LLP. Ms.
Tozier served as Vice President of Finance, Operations and Transformation of Honeywell International, Inc. Kristin M. Coleman joined us in November of 2022 and currently serves as Executive Vice President, General Counsel and Corporate Secretary. Ms. Coleman has nearly 30 years of legal experience, previously serving as Executive Vice President, General Counsel, and Chief Compliance Officer at US Foods.
Coleman has nearly 30 years of legal experience, previously serving as Executive Vice President, General Counsel, and Chief Compliance Officer at US Foods from February 2017 to November 2022.
During his 16-year FMC career, he served in additional leadership roles including Investor Relations, Corporate Development and Director of FMC Healthcare Ventures. Prior to FMC, Mr. Norris founded and led an internet-based firm offering formulation and design tools to the chemical industry.
Norris served as Vice President and Global Business Director for FMC Health and Nutrition, and Vice President and Global Business Director for FMC Lithium. During his 16-year FMC career, he served in additional leadership roles including Investor Relations, Corporate Development and Director of FMC Healthcare Ventures. Prior to FMC, Mr.
Barichivich began his career at Georgia Pacific, where he worked as an internal auditor and was a financial analyst supporting the restructuring of the Distribution Division. Raphael Crawford was appointed President, Catalysts Global Business Unit in 2018. Mr.
Barichivich began his career at Georgia Pacific, where he worked as an internal auditor and was a financial analyst supporting the restructuring of the Distribution Division. Kristin M. Coleman joined Albemarle in November of 2022 as Executive Vice President, General Counsel and Corporate Secretary. Ms.
The term of office of each officer is until the meeting of the Board of Directors following the next annual shareholders’ meeting in May 2023. 48 Albemarle Corporation and Subsidiaries Name Age Position J. Kent Masters 62 Chairman, President and Chief Executive Officer Scott A. Tozier 57 Executive Vice President, Chief Financial Officer Kristin M.
The term of office of each officer is until the meeting of the Board of Directors following the next annual shareholders’ meeting in May 2024. Name Age Position J. Kent Masters 63 Chairman, President and Chief Executive Officer Neal R. Sheorey 47 Executive Vice President, Chief Financial Officer Melissa Anderson 59 Senior Vice President, Chief Human Resources Officer John C.
Item 4. Mine Safety Disclosures. NONE Executive Officers of the Registrant. The names, ages and biographies of our executive officers, as of February 15, 2023, are set forth below.
Item 4. Mine Safety Disclosures. NONE Executive Officers of the Registrant.
Barichivich III was elected Vice President, Corporate Controller and Chief Accounting Officer effective November 2019. Mr. Barichivich has worked for the Company since 2007, holding various staff and leadership positions of increasing responsibility. Most recently, Mr. Barichivich served as Chief Financial Officer Vice President Finance, Purchasing, and S&OP Catalysts GBU since February 2019. Between January 2016 and February 2019, Mr.
Most recently, Mr. Barichivich served as Chief Financial Officer and Vice President Finance, Purchasing, and S&OP Catalysts global business unit from February 2019 to November 2019. Between January 2016 and February 2019, Mr.
Previously, he served in a variety of roles for Rohm and Haas Company including sales, marketing, strategic planning and investor relations. Norris is a member of the board of directors of Communities in Schools of Charlotte-Mecklenburg and is a member of the board of directors of The Zero Emission Transportation Association (ZETA). PART II
Norris founded and led an internet-based firm offering formulation and design tools to the chemical industry. Previously, he served in a variety of roles for Rohm and Haas Company including sales, marketing, strategic planning and investor relations.
Eric Norris was appointed President, Lithium Global Business Unit in August 2018. Mr. Norris joined Albemarle in January 2018 as Chief Strategy Officer. In this role, he managed the company’s strategic planning, M&A, and corporate business development programs as well as its investor relations efforts. Prior to joining Albemarle, Mr.
Department of Veterans Affairs from 2003 to 2005, where she was a senate-confirmed presidential appointee. Eric Norris was appointed President, Lithium (now Energy Storage) global business unit in August 2018. Mr. Norris joined Albemarle in January 2018 as Chief Strategy Officer. Prior to joining Albemarle, Mr.
Anderson serves on the board of Vulcan Materials and as Chair of the Society of Human Resource Management (SHRM), the world's largest HR professional association. She is also a member of the advisory board for the Center for Executive Succession at the University of South Carolina's Darla Moore School of Business. 49 Albemarle Corporation and Subsidiaries John C.
Her previous experience also includes 17 years with IBM in progressive Human Resources leadership roles. Ms. Anderson serves on the board of Vulcan Materials and as Chair of the Society of Human Resource Management (SHRM), the world's largest HR professional association.
Crawford is a member of the board of directors of the American Fuel & Petrochemical Manufacturers (AFPM) association, where he had served as chairman of the Petrochemical Members Committee and as a member of the Executive Committee. Netha Johnson joined Albemarle as President, Bromine Global Business Unit in 2018. Mr.
Norris is a member of the board of directors of Communities in Schools of Charlotte-Mecklenburg and served as a member of the board of directors of The Zero Emission Transportation Association (ZETA) from 2021 to 2023. Michael Simmons joined Albemarle as President, Ketjen global business unit in June 2023. Mr.
Barichivich III 55 Vice President, Corporate Controller, Chief Accounting Officer Raphael Crawford 47 President, Catalysts Global Business Unit Netha Johnson 52 President, Bromine Global Business Unit Eric Norris 56 President, Lithium Global Business Unit J. Kent Masters was elected as Chairman, President and Chief Executive Officer in April 2020.
Fourie 48 Chief Capital Projects Officer Netha Johnson 53 President, Specialties Global Business Unit Cynthia Lima 62 Senior Vice President, Chief External Affairs and Communications Officer Eric Norris 57 President, Energy Storage Global Business Unit Michael Simmons 60 President, Ketjen Global Business Unit J. Kent Masters has served as Chairman, President and Chief Executive Officer in April 2020.
Coleman 54 Executive Vice President, General Counsel and Corporate Secretary Karen G. Narwold 63 Executive Vice President, Chief Administrative Officer Melissa Anderson 58 Senior Vice President, Chief Human Resources Officer John C.
Barichivich III 56 Vice President, Corporate Controller, Chief Accounting Officer Kristin M. Coleman 55 Executive Vice President, General Counsel and Corporate Secretary Jacobus G.
Removed
Tozier also served as our Chief Accounting Officer from January 2013 until February 2014. Mr. Tozier has over 25 years of diversified international financial management experience. Following four years of assurance services with the international firm Ernst & Young, LLP, Mr.
Added
On November 6, 2023, Scott Tozier transitioned from the role of Executive Vice President and Chief Financial Officer to become a strategic advisor to the Chief Executive Officer. 51 Albemarle Corporation and Subsidiaries The names, ages and biographies of our executive officers, as of February 15, 2024, are set forth below.
Removed
Tozier joined Honeywell International, Inc., where his 16 year career spanned senior financial positions in the U.S., Australia and Europe. His roles of increasing responsibilities included management of financial planning, analysis and reporting, global credit and treasury services and Chief Financial Officer of Honeywell’s Transportation Systems, Turbo Technologies and Building Solutions divisions. Most recently, Mr.
Added
Sheorey served for more than 20 years in progressive finance, business and corporate leadership roles at The Dow Chemical Company (“Dow”), most recently serving as vice president of Dow’s Coatings and Performance Monomers business unit from February 2020 to November 2023. Previously, Mr.
Removed
She serves as a Board Member Emeritus for the Center for Enriched Living. Karen G. Narwold joined us in September of 2010 and currently serves as Executive Vice President and Chief Administrative Officer. Ms. Narwold has over 25 years of legal, management and business experience with global industrial and chemical companies.
Added
Sheorey served as Dow’s Vice President of Investor Relations from January 2016 to February 2020, Senior Director of Corporate Development from 2015 to 2016 and Global Finance Director for the Chemicals business group from 2012 to 2015. Melissa Anderson joined Albemarle as Senior Vice President, Chief Human Resources Officer in January 2021. Prior to joining Albemarle, Ms.
Removed
After five years in private practice, she served as Vice President, General Counsel, Human Resources and Secretary of GrafTech International Ltd., a global graphite and carbon manufacturer and former subsidiary of Union Carbide. She then served as Vice President and Strategic Counsel of Barzel Industries, a North American steel processor and distributor. Prior to joining Albemarle, Ms.
Added
She is also a member of the advisory board for the Center for Executive Succession at the University of South Carolina's Darla Moore School of Business. John C. Barichivich III was appointed Vice President, Corporate Controller and Chief Accounting Officer effective November 2019. Mr. Barichivich has worked for Albemarle since 2007, holding various staff and leadership positions of increasing responsibility.
Removed
Narwold served as Special Counsel with Kelley Drye & Warren LLP and with Symmetry Advisors where she worked in the areas of strategic, financial and capital structure planning and restructuring for public and private companies. Ms. Narwold was appointed as a member of the Board of Directors of Ingevity Corporation on February 20, 2019. On October 31, 2022, Ms.
Added
Coleman founded the Chicago General Counsel Forum and is a member of the Economic Club of Chicago. She serves as a Board Member Emeritus for the Center for Enriched Living. Jacobus G. Fourie has served as Chief Capital Projects Officer since June 2021. He joined Albemarle in January 2019 as Vice President, Engineering and Project Execution.
Removed
Previous to that role, she held the role of Senior Vice President, Human Resources, for Domtar Corporation in South Carolina. Her previous experience also includes 17 years with IBM in progressive Human Resources leadership roles. Ms.
Added
Prior to joining Albemarle, Mr. Fourie served as Senior Vice President of Capital Projects for Barrick Gold Corporation from May 2017 to November 2018, where he was responsible for projects in the U.S., Chile, Argentina and Saudi Arabia. Previously, Mr. Fourie spent 16 years with BHP Billiton where he held various leadership roles in projects, operations, marketing and business development.
Removed
Crawford joined Albemarle in 2012 as Vice President of the Performance Catalysts Solutions unit, and the additional responsibility of Managing Director for Rockwood Lithium GmbH after the Rockwood acquisition. In 2015, Mr. Crawford was appointed President of the Bromine Specialties business unit until being named to his current role. Prior to Albemarle, Mr.
Added
As VP Projects - Iron Ore, he oversaw a portfolio of major capital projects and sustaining capital projects in Western Australia. As Head of Group Business Management Systems, he was responsible for implementing a large SAP system project for BHP Billiton, while based in Singapore. Prior to this, he was Asset President of BHP Billiton’s New Mexico Coal business.
Removed
Crawford served as the Director of Global Marketing and Business Development for Dow Coating Materials, a global business unit of The Dow Chemical Company. He also served as the Global Commercial Director and Global Asset Director for Dow Water and Process Solutions, following the acquisition of Rohm and Haas Company.
Added
Cynthia Lima was appointed Senior Vice President, Chief External Affairs and Communications Officer of Albemarle in November 2023. Ms. Lima joined Albemarle in February 2023 as Chief Communications Officer. Prior to joining Albemarle, Ms. Lima founded C-Suite Communications, a communications and public affairs consultancy, in 2010.
Removed
Previously, Crawford held various strategic marketing and commercial roles at Rohm and Haas. Prior to Rohm and Haas, Mr. Crawford worked at Campbell Soup Company as a Marketing Manager. He began his career at SNET Telecommunications where he served in several capacities including new ventures, finance and marketing. Mr.
Added
She held senior positions at domestic and global public relations agencies, including serving as a senior partner at SP Consulting from December 2014 to February 2023 and serving as Senior Vice President of Fleishman-Hillard Inc. from 2005 to 2010. Previously, Ms. Lima served in the U.S. Department of State from 2001 to 2003 and U.S.
Added
Simmons has more than 30 years of experience as an operating executive, including serving as a senior partner at Vantage Consulting, a business advisory service specializing in strategy, execution and leadership for energy, financial, and medical clients, from January 2018 to June 2023, and serving as a group president at Shawcor from 2012 to 2017.
Added
He served as a private equity partner for Q Investments from 2006 to 2021. He began his career at GE, becoming Chief Executive Officer of the PII Pipeline Solutions unit of GE Oil & Gas from 2005 to 2007. PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+0 added−0 removed1 unchanged
Biggest changeOn each of February 24, 2022, May 3, 2022, July 18, 2022, and October 24, 2022, we declared a dividend of $0.395 per share. In each quarter of 2021, we declared a dividend of $0.39 per share and, in each quarter of 2020, we declared a dividend of $0.385 per share.
Biggest changeOn each of February 23, 2023, May 2, 2023, July 18, 2023, and October 23, 2023, we declared a dividend of $0.40 per share. In each quarter of 2022, we declared a dividend of $0.395 per share and, in each quarter of 2021, we declared a dividend of $0.39 per share.
We expect to continue to declare and pay comparable dividends to our shareholders in the future, however, dividends are declared solely at 50 Albemarle Corporation and Subsidiaries the discretion of our Board of Directors and there is no guarantee that the Board of Directors will continue to declare dividends in the future.
We expect to continue to declare and pay comparable dividends to our shareholders in the future, however, dividends are declared solely at 53 Albemarle Corporation and Subsidiaries the discretion of our Board of Directors and there is no guarantee that the Board of Directors will continue to declare dividends in the future.
Stock Performance Graph The graph below shows the cumulative total shareholder return assuming the investment of $100 in our common stock on December 31, 2017 and the reinvestment of all dividends thereafter.
Stock Performance Graph The graph below shows the cumulative total shareholder return assuming the investment of $100 in our common stock on December 31, 2018 and the reinvestment of all dividends thereafter.
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Our common stock trades on the New York Stock Exchange (“NYSE”) under the symbol “ALB.” There were 117,197,977 shares of common stock held by 2,101 shareholders of record as of February 8, 2023.
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Our common stock trades on the New York Stock Exchange (“NYSE”) under the symbol “ALB.” There were 117,402,949 shares of common stock held by 2,039 shareholders of record as of February 7, 2024.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

151 edited+83 added−60 removed133 unchanged
Biggest changeSee Note 17, “Commitments and Contingencies,” to our consolidated financial statements included in Part II, Item 8 of this report for further details • $97.5 million one-time tax expense recorded for the gain on the sale of the FCS business in 2021 • $27.9 million discrete tax benefit recorded in 2021 related to the indemnification estimate of an ongoing tax-related matter in Germany • 2021 included a discrete tax expense due to an out-of-period adjustment for an overstated deferred tax liability recorded during the three-month period ended December 31, 2017 Equity in Net Income of Unconsolidated Investments In thousands 2022 2021 $ Change % Change Equity in net income of unconsolidated investments $ 772,275 $ 95,770 $ 676,505 706 % • Increased earnings due to strong pricing and volume increases from the Talison joint venture • $10.9 million of favorable foreign exchange impacts from the Talison joint venture Net Income Attributable to Noncontrolling Interests In thousands 2022 2021 $ Change % Change Net income attributable to noncontrolling interests $ (125,315) $ (76,270) $ (49,045) 64 % ▪ Increase in consolidated income related to our JBC joint venture due to favorable pricing Net Income Attributable to Albemarle Corporation In thousands 2022 2021 $ Change % Change Net income attributable to Albemarle Corporation $ 2,689,816 $ 123,672 $ 2,566,144 2,075 % Percentage of Net Sales 36.7 % 3.7 % Basic earnings per share $ 22.97 $ 1.07 $ 21.90 2,047 % Diluted earnings per share $ 22.84 $ 1.06 $ 21.78 2,055 % ▪ Favorable pricing and increased sales volume in all businesses, particularly in Lithium ▪ Increased earnings from Talison joint venture ▪ Productivity improvements and a reduction in administrative costs ▪ Increased commission expenses in Chile resulting from the higher pricing in Lithium ▪ $504.5 million, net of income taxes, of additional expense recorded following the settlement of an arbitration ruling for a prior legal matter in 2021 ▪ Gain on sale of FCS business of $330.9 million, net of tax in 2021 ▪ $132.4 million expense related to cost overruns for MRL’s 40% interest in lithium hydroxide conversion assets being built in Kemerton in 2021 ▪ Increased utility, primarily natural gas in Europe, and freight costs in each of our businesses ▪ Increased SG&A expenses, primarily related to increased compensation expense ▪ Increased interest and financing expenses due to higher debt balances ▪ Mark-to-market actuarial gains of $26.5 million, net of income taxes, recorded in 2022 compared to mark-to-market actuarial gains of $43.6 million, net of income taxes, recorded in 2021 58 Albemarle Corporation and Subsidiaries Other Comprehensive (Loss) Income, Net of Tax In thousands 2022 2021 $ Change % Change Other comprehensive (loss) income, net of tax $ (168,295) $ (66,478) $ (101,817) 153 % • Foreign currency translation $ (171,295) $ (74,385) $ (96,910) 130 % ▪ 2022 included unfavorable movements in the Chinese Renminbi of approximately $74 million, the Euro of approximately $64 million, the Japanese Yen of approximately $14 million, the Taiwanese Dollar of approximately $9 million, the South Korean Won of approximately $5 million and the net unfavorable variance in other currencies totaling approximately $6 million ▪ 2022 included a $0.9 million gain compared to a loss of $5.4 million in 2021, representing adjustments to the fair value of our available-for-sale debt securities ▪ 2021 included unfavorable movements in the Euro of approximately $62 million, the Japanese Yen of approximately $8 million, the Brazilian Real of approximately $5 million, the South Korean Won of approximately $4 million and the net unfavorable variance in other currencies totaling approximately $5 million, partially offset by favorable movements in the Chinese Renminbi of approximately $10 million • Net investment hedge $ — $ 5,110 $ (5,110) (100) % • Cash flow hedge $ (4,399) $ 174 $ (4,573) * • Interest rate swap $ 7,399 $ 2,623 $ 4,776 182 % ▪ Accelerated the amortization of the remaining interest rate swap balance in 2022 as a result of the repayment of the 4.15% senior notes in 2024 • Percentage calculation is not meaningful Segment Information Overview.
Biggest changeSee Note 17, “Commitments and Contingencies,” for further details ▪ Increased SG&A expenses, primarily related to increased compensation expense ▪ $49.1 million of a year over year decrease related to the fair value adjustments of equity securities in public companies ▪ Mark-to-market actuarial gains of $8.3 million, net of income taxes, recorded in 2023 compared to mark-to-market actuarial gains of $26.5 million, net of income taxes, recorded in 2022 ▪ Favorable pricing impacts and higher sales volume in Energy Storage and Ketjen ▪ Increased earnings from Windfield joint venture ▪ $71.2 million gain in 2023 resulting from the restructuring of the MARBL joint venture with MRL ▪ $61.6 million increase attributable to foreign exchange impacts from gains recorded in 2023 Other Comprehensive Income (Loss), Net of Tax In thousands 2023 2022 $ Change % Change Other comprehensive income (loss), net of tax $ 32,254 $ (168,295) $ 200,549 (119) % • Foreign currency translation $ 26,403 $ (171,295) $ 197,698 (115) % ▪ 2023 included favorable movements in the Euro of approximately $41 million and the Brazilian Real of approximately $5 million, partially offset by unfavorable movements in the Chinese Renminbi of approximately $12 million, the Japanese Yen of approximately $8 million and a net unfavorable variance in various other currencies of approximately $1 million ▪ 2022 included unfavorable movements in the Chinese Renminbi of approximately $74 million, the Euro of approximately $64 million, the Japanese Yen of approximately $14 million, the Taiwanese Dollar of approximately $9 million, the South Korean Won of approximately $5 million and the net unfavorable variance in other currencies totaling approximately $6 million • Cash flow hedge $ 5,851 $ (4,399) $ 10,250 (233) % • Interest rate swap $ — $ 7,399 $ (7,399) (100) % ▪ Accelerated the amortization of the remaining interest rate swap balance in 2022 as a result of the repayment of the 4.15% senior notes in 2024 Segment Information Overview.
Total adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, the generally accepted accounting principles in the United States (“U.S. GAAP”). Adjusted EBITDA should not be considered as an alternative to Net (loss) income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S.
Total adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, the generally accepted accounting principles in the United States (“U.S. GAAP”). Total adjusted EBITDA should not be considered as an alternative to Net (loss) income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S.
GAAP, or any other financial measure reported in accordance with U.S.
GAAP, or any other financial measure reported in accordance with U.S. GAAP.
The net proceeds from the issuance of the 2022 Notes were used to repay the balance of the commercial paper notes, the remaining balance of $425.0 million of the 4.15% Senior Notes due 2024 (the “2024 Notes”) and for general corporate purposes.
The net proceeds from the issuance of the 2022 Notes were used to repay the balance of commercial paper notes, the remaining balance of $425.0 million of the 4.15% Senior Notes due 2024 (the “2024 Notes”) and for general corporate purposes.
Factors that could cause actual results to differ materially from the outlook expressed or implied in any forward-looking statement include, without limitation, information related to: • changes in economic and business conditions; • product development; • changes in financial and operating performance of our major customers and industries and markets served by us; • the timing of orders received from customers; • the gain or loss of significant customers; 51 Albemarle Corporation and Subsidiaries • fluctuations in lithium market pricing, which could impact our revenues and profitability particularly due to our increased exposure to index-referenced and variable-priced contracts for battery grade lithium sales; • inflationary trends in our input costs, such as raw materials, transportation and energy, and their effects on our business and financial results; • changes with respect to contract renegotiations; • potential production volume shortfalls; • competition from other manufacturers; • changes in the demand for our products or the end-user markets in which our products are sold; • limitations or prohibitions on the manufacture and sale of our products; • availability of raw materials; • increases in the cost of raw materials and energy, and our ability to pass through such increases to our customers; • technological change and development; • changes in our markets in general; • fluctuations in foreign currencies; • changes in laws and government regulation impacting our operations or our products; • the occurrence of regulatory actions, proceedings, claims or litigation (including with respect to the U.S.
Factors that could cause actual results to differ materially from the outlook expressed or implied in any forward-looking statement include, without limitation, information related to: • changes in economic and business conditions; • product development; • changes in financial and operating performance of our major customers and industries and markets served by us; • the timing of orders received from customers; • the gain or loss of significant customers; • fluctuations in lithium market pricing, which could impact our revenues and profitability particularly due to our increased exposure to index-referenced and variable-priced contracts for battery grade lithium sales; • inflationary trends in our input costs, such as raw materials, transportation and energy, and their effects on our business and financial results; • changes with respect to contract renegotiations; 54 Albemarle Corporation and Subsidiaries • potential production volume shortfalls; • competition from other manufacturers; • changes in the demand for our products or the end-user markets in which our products are sold; • limitations or prohibitions on the manufacture and sale of our products; • availability of raw materials; • increases in the cost of raw materials and energy, and our ability to pass through such increases to our customers; • technological change and development; • changes in our markets in general; • fluctuations in foreign currencies; • changes in laws and government regulation impacting our operations or our products; • the occurrence of regulatory actions, proceedings, claims or litigation (including with respect to the U.S.
The Company currently utilizes the following practical expedients, as permitted by Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers : • All sales and other pass-through taxes are excluded from contract value; • In utilizing the modified retrospective transition method, no adjustment was necessary for contracts that did not cross over the reporting year; • We will not consider the possibility of a contract having a significant financing component (which would effectively attribute a portion of the sales price to interest income) unless, if at contract inception, the expected payment terms (from time of delivery or other relevant criterion) are more than one year; 64 Albemarle Corporation and Subsidiaries • If our right to customer payment is directly related to the value of our completed performance, we recognize revenue consistent with the invoicing right; and • We expense as incurred all costs of obtaining a contract incremental to any costs/compensation attributable to individual product sales/shipments for contracts where the amortization period for such costs would otherwise be one year or less.
The Company currently utilizes the following practical expedients, as permitted by Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers : • All sales and other pass-through taxes are excluded from contract value; • In utilizing the modified retrospective transition method, no adjustment was necessary for contracts that did not cross over the reporting year; • We will not consider the possibility of a contract having a significant financing component (which would effectively attribute a portion of the sales price to interest income) unless, if at contract inception, the expected payment terms (from time of delivery or other relevant criterion) are more than one year; • If our right to customer payment is directly related to the value of our completed performance, we recognize revenue consistent with the invoicing right; and • We expense as incurred all costs of obtaining a contract incremental to any costs/compensation attributable to individual product sales/shipments for contracts where the amortization period for such costs would otherwise be one year or less.
Our decision to retain this business as a separate, wholly-owned subsidiary is intended to better meet customer needs and foster talent required to deliver in a competitive global environment.
Our decision to retain this business as a separate, wholly-owned subsidiary is intended to better meet customer needs and foster the talent required to deliver in a competitive global environment.
The Issuer’s cash flow and ability to make payments on the 3.45% Senior Notes could be dependent upon the earnings it derives from the production from MARBL for the Wodgina Project.
The Issuer’s cash flow and ability to make payments on the 3.45% Senior Notes could be dependent upon the earnings it derives from the production from MARBL for Wodgina.
Borrowings under the 2018 Credit Agreement bear interest at variable rates based on a benchmark rate depending on the currency in which the loans are denominated, plus an applicable margin which ranges from 0.910% to 1.375%, depending on the Company’s credit rating from Standard & Poor’s Ratings Services LLC (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Inc. (“Fitch”).
Borrowings under the 2022 Credit Agreement bear interest at variable rates based on a benchmark rate depending on the currency in which the loans are denominated, plus an applicable margin which ranges from 0.910% to 1.375%, depending on the Company’s credit rating from Standard & Poor’s Ratings Services LLC (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Inc. (“Fitch”).
If we determine based on the qualitative assessment that it is more likely than not that the asset is impaired, an impairment test is performed by comparing the fair value of the indefinite-lived intangible asset to its carrying amount. During the year ended December 31, 2022, no evidence of impairment was noted from the analysis for our indefinite-lived intangible assets.
If we determine based on the qualitative assessment that it is more likely than not that the asset is impaired, an impairment test is performed by comparing the fair value of the indefinite-lived intangible asset to its carrying amount. During the year ended December 31, 2023, no evidence of impairment was noted from the analysis for our indefinite-lived intangible assets.
With respect to loans denominated in U.S. dollars, interest is calculated using the term Secured Overnight Financing Rate (“SOFR”) plus a term SOFR adjustment of 0.10%, plus the applicable margin. The applicable margin on the facility was 1.125% as of December 31, 2022. There were no borrowings outstanding under the 2018 Credit Agreement as of December 31, 2022.
With respect to loans denominated in U.S. dollars, interest is calculated using the term Secured Overnight Financing Rate (“SOFR”) plus a term SOFR adjustment of 0.10%, plus the applicable margin. The applicable margin on the facility was 1.125% as of December 31, 2023. There were no borrowings outstanding under the 2022 Credit Agreement as of December 31, 2023.
(h) Included in SG&A is a charitable contribution, using a portion of the proceeds received from the FCS divestiture, to the Albemarle Foundation, a non-profit organization that sponsors grants, health and social projects, educational initiatives, disaster relief, matching gift programs, scholarships and other charitable initiatives in locations where the Company’s employees live and the Company operates.
(g) Included in SG&A is a charitable contribution, using a portion of the proceeds received from the FCS divestiture, to the Albemarle Foundation, a non-profit organization that sponsors grants, health and social projects, educational initiatives, disaster relief, matching gift programs, scholarships and other charitable initiatives in locations where the Company’s employees live and the Company operates.
We believe our selected discount rates are determined using preferred methodology under authoritative accounting guidance and accurately reflect market conditions as of the December 31, 2022 measurement date. In selecting the discount rates for the foreign plans, we look at long-term yields on AA-rated corporate bonds when available.
We believe our selected discount rates are determined using preferred methodology under authoritative accounting guidance and accurately reflect market conditions as of the December 31, 2023 measurement date. In selecting the discount rates for the foreign plans, we look at long-term yields on AA-rated corporate bonds when available.
(i) Included in Other income (expenses), net to revise an indemnification estimate for an ongoing tax-related matter of a previously disposed business in Germany. A corresponding discrete tax benefit of $27.9 million was recorded in Income tax expense during the same period, netting to an expected cash obligation of approximately $11.5 million.
(h) Included in Other income (expenses), net to revise an indemnification estimate for an ongoing tax-related matter of a previously disposed business in Germany. A corresponding discrete tax benefit of $27.9 million was recorded in Income tax expense during the same period, netting to an expected cash obligation of approximately $11.5 million.
Our standard terms of delivery are generally included in our contracts of sale, order confirmation documents and invoices, while the timing between shipment and delivery generally ranges between 1 and 45 days. Costs for shipping and handling activities, whether performed before or after the customer obtains control of the goods, are accounted for as fulfillment costs.
Our standard terms of delivery are generally included in our contracts of sale, order confirmation documents and invoices, while the timing between shipment and delivery generally ranges between 1 and 45 days. Costs for shipping and handling activities, whether performed before or after the customer obtains control of the goods, are accounted for as fulfillment costs. Such costs are immaterial.
We believe that as of December 31, 2022 we were, and currently are, in compliance with all of our debt covenants. For additional information about our long-term debt obligations, see Note 14, “Long-Term Debt,” to our consolidated financial statements included in Part II, Item 8 of this report.
We believe that as of December 31, 2023 we were, and currently are, in compliance with all of our debt covenants. For additional information about our long-term debt obligations, see Note 14, “Long-Term Debt,” to our consolidated financial statements included in Part II, Item 8 of this report.
As is customary for such long-term debt instruments, each series of notes outstanding has terms that allow us to redeem the notes before maturity, in whole at any time or in part from time to time, at a redemption price equal to the greater of (i) 100% of the principal amount of these notes to be redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis using the comparable government rate (as defined in the indentures governing these notes) plus between 25 and 40 basis points, depending on the series of notes, plus, in each case, accrued interest thereon to the date of redemption.
As is customary for such long-term debt instruments, each series of notes 74 Albemarle Corporation and Subsidiaries outstanding has terms that allow us to redeem the notes before maturity, in whole at any time or in part from time to time, at a redemption price equal to the greater of (i) 100% of the principal amount of these notes to be redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis using the comparable government rate (as defined in the indentures governing these notes) plus between 25 and 40 basis points, depending on the series of notes, plus, in each case, accrued interest thereon to the date of redemption.
At December 31, 2022, the assumed rate of increase in the pre-65 and post-65 per capita cost of covered health care benefits for U.S. retirees was zero as the employer-paid premium caps (pre-65 and post-65) were met starting January 1, 2013.
At December 31, 2023, the assumed rate of increase in the pre-65 and post-65 per capita cost of covered health care benefits for U.S. retirees was zero as the employer-paid premium caps (pre-65 and post-65) were met starting January 1, 2013.
For 2022, the discount rates were calculated using the results from a bond matching technique developed by Milliman, which matched the future estimated annual benefit payments of each respective plan against a portfolio of bonds of high quality to determine the discount rate.
For 2023, the discount rates were calculated using the results from a bond matching technique developed by Milliman, which matched the future estimated annual benefit payments of each respective plan against a portfolio of bonds of high quality to determine the discount rate.
See Note 17, “Commitments and Contingencies” to our consolidated financial statements included in Part II, Item 8 of this report for a reconciliation of our environmental liabilities for the years ended December 31, 2022, 2021 and 2020.
See Note 17, “Commitments and Contingencies” to our consolidated financial statements included in Part II, Item 8 of this report for a reconciliation of our environmental liabilities for the years ended December 31, 2023, 2022 and 2021.
Long-Term Debt We currently have the following notes outstanding: Issue Month/Year Principal (in millions) Interest Rate Interest Payment Dates Maturity Date November 2019 €371.7 1.125% November 25 November 25, 2025 May 2022 (a) $650.0 4.65% June 1 and December 1 June 1, 2027 November 2019 €500.0 1.625% November 25 November 25, 2028 November 2019 (a) $171.6 3.45% May 15 and November 15 November 15, 2029 May 2022 (a) $600.0 5.05% June 1 and December 1 June 1, 2032 November 2014 (a) $350.0 5.45% June 1 and December 1 December 1, 2044 May 2022 (a) $450.0 5.65% June 1 and December 1 June 1, 2052 70 Albemarle Corporation and Subsidiaries (a) Denotes senior notes.
Long-Term Debt We currently have the following notes outstanding: Issue Month/Year Principal (in millions) Interest Rate Interest Payment Dates Maturity Date November 2019 €371.7 1.125% November 25 November 25, 2025 May 2022 (a) $650.0 4.65% June 1 and December 1 June 1, 2027 November 2019 €500.0 1.625% November 25 November 25, 2028 November 2019 (a) $171.6 3.45% May 15 and November 15 November 15, 2029 May 2022 (a) $600.0 5.05% June 1 and December 1 June 1, 2032 November 2014 (a) $350.0 5.45% June 1 and December 1 December 1, 2044 May 2022 (a) $450.0 5.65% June 1 and December 1 June 1, 2052 (a) Denotes senior notes.
We have the ability and intent to refinance our borrowings under our other existing credit lines with borrowings under the 2018 Credit Agreement, as applicable. Therefore, the amounts outstanding under those credit lines, if any, are classified as long-term debt.
We have the ability and intent to refinance our borrowings under our other existing credit lines with borrowings under the 2022 Credit Agreement, as applicable. Therefore, the amounts outstanding under those credit lines, if any, are classified as long-term debt.
In the first quarter of 2021, we made the following debt principal payments using the net proceeds from this underwritten public offering: • €123.8 million of the 1.125% notes due in November 2025 • €393.0 million, the remaining balance, of the 1.875% Senior notes originally due in December 2021 • $128.4 million of the 3.45% senior notes due in November 2029 • $200.0 million, the remaining balance, of the floating rate notes originally due in November 2022 69 Albemarle Corporation and Subsidiaries • €183.3 million, the outstanding balance, of the unsecured credit facility originally entered into on August 14, 2019, as amended and restated on December 15, 2020 (the “2019 Credit Facility”) • $325.0 million, the outstanding balance, of the commercial paper notes Capital expenditures were $1.3 billion, $953.7 million and $850.5 million for the years ended December 31, 2022, 2021 and 2020, respectively, and were incurred mainly for plant, machinery and equipment.
In the first quarter of 2021, we made the following debt principal payments using the net proceeds from this underwritten public offering: • €123.8 million of the 1.125% notes due in November 2025 • €393.0 million, the remaining balance, of the 1.875% Senior notes originally due in December 2021 • $128.4 million of the 3.45% senior notes due in November 2029 • $200.0 million, the remaining balance, of the floating rate notes originally due in November 2022 • €183.3 million, the outstanding balance, of the unsecured credit facility originally entered into on August 14, 2019, as amended and restated on December 15, 2020 (the “2019 Credit Facility”) • $325.0 million, the outstanding balance, of the commercial paper notes 73 Albemarle Corporation and Subsidiaries Capital expenditures were $2.1 billion, $1.3 billion and $953.7 million for the years ended December 31, 2023, 2022 and 2021, respectively, and were incurred mainly for plant, machinery and equipment.
On a longer-term basis, we continue to believe that improving global standards of living, widespread digitization, increasing demand for data management capacity and the potential for increasingly stringent fire safety regulations in developing markets are likely to drive continued demand for fire safety products.
On a longer-term basis, we continue to believe that improving global standards of living, widespread digitization, increasing demand for data management capacity and the potential for increasingly stringent fire safety regulations in developing markets are likely to drive continued demand for fire safety, bromine and lithium specialties products.
For example, our Lithium business contributes to the growth of clean miles driven with electric vehicles and more efficient use of renewable energy through grid storage; Bromine enables the prevention of fires starting in electronic equipment, greater fuel efficiency from rubber tires and the reduction of emissions from coal fired power plants; and the Catalysts business creates efficiency of natural resources through more usable products from a single barrel of oil, enables safer, greener production of alkylates used to produce more environmentally-friendly fuels, and reduced emissions through cleaner transportation fuels.
For example, our Energy Storage business contributes to the growth of clean miles driven with electric vehicles and more efficient use of renewable energy through grid storage; Specialties enables the prevention of fires starting in electronic equipment, greater fuel efficiency from rubber tires and the reduction of emissions from coal fired power plants; and our Ketjen business creates efficiency of natural resources through more usable products from a single barrel of oil, enables safer, greener production of alkylates used to produce more environmentally-friendly fuels, and reduced emissions through cleaner transportation fuels.
The transaction price of a contract, or the amount we expect to receive upon satisfaction of all performance obligations, is determined by reference to the contract’s terms and includes adjustments, if applicable, for any variable consideration, such as customer rebates, noncash consideration or consideration payable to the customer, although these adjustments are generally not material.
The transaction price of a contract, or the amount we expect to receive upon satisfaction of all performance obligations, is determined by reference to the contract’s terms and includes adjustments, if applicable, for any variable consideration, such as 67 Albemarle Corporation and Subsidiaries customer rebates, noncash consideration or consideration payable to the customer, although these adjustments are generally not material.
Any right that the Parent Guarantor has to receive any assets of any of the Non-Guarantors upon the liquidation or reorganization of any Non-Guarantor, and the consequent rights of holders of the 3.45% Senior Notes to realize proceeds from the sale of any of a Non-Guarantor’s assets, would be effectively subordinated to the claims of such Non-Guarantor’s creditors, including trade creditors and holders of 75 Albemarle Corporation and Subsidiaries preferred equity interests, if any, of such Non-Guarantor.
Any right that the Parent Guarantor has to receive any assets of any of the Non-Guarantors upon the liquidation or reorganization of any Non-Guarantor, and the consequent rights of holders of the 3.45% Senior Notes to realize proceeds from the sale of any of a Non-Guarantor’s assets, would be effectively subordinated to the claims of such Non-Guarantor’s creditors, including trade creditors and holders of preferred equity interests, if any, of such Non-Guarantor.
A discussion of our consolidated financial condition and sources of additional capital is included under a separate heading “Financial Condition and Liquidity.” Overview We are a leading global developer, manufacturer and marketer of highly-engineered specialty chemicals that are designed to meet our customers’ needs across a diverse range of end markets.
A discussion of our consolidated financial condition and sources of additional capital is included under a separate heading “Financial Condition and Liquidity.” 55 Albemarle Corporation and Subsidiaries Overview We are a leading global developer, manufacturer and marketer of highly-engineered specialty chemicals that are designed to meet our customers’ needs across a diverse range of end markets.
(j) Included amounts for the year ended December 31, 2021 recorded in: • Cost of goods sold - $10.5 million of expense related to a legal matter as part of a prior acquisition in our Lithium business. • SG&A - $11.5 million of legal fees related to a legacy Rockwood legal matter noted above, $9.8 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements, a $4.0 million loss resulting from the sale of property, plant and equipment and $3.8 million of charges for environmental reserves at a sites not part of our operations. • Other income (expenses), net - $4.8 million of net expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle.
Included amounts for the year ended December 31, 2021 recorded in: • Cost of goods sold - $10.5 million of expense related to a legal matter as part of a prior acquisition in our Lithium business. • SG&A - $11.5 million of legal fees related to a legacy Rockwood legal matter noted above, $9.8 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements, a $4.0 million loss resulting from the sale of property, plant and equipment, $3.8 million of charges for environmental reserves at a sites not part of our operations and $3.2 million of facility closure costs related to offices in Germany, and severance expenses in Germany and Belgium. • Other income (expenses), net - $4.8 million of net expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle.
Aggregate borrowings outstanding under the 2018 Credit Agreement and the Commercial Paper Notes will not exceed the $1.5 billion current maximum amount available under the 2018 Credit Agreement.
Aggregate borrowings outstanding under the 2022 Credit Agreement and the Commercial Paper Notes will not exceed the $1.5 billion current maximum amount available under the 2022 Credit Agreement.
In de minimis situations, our policy generally is to negotiate a consent decree and to pay any 77 Albemarle Corporation and Subsidiaries apportioned settlement, enabling us to be effectively relieved of any further liability as a PRP, except for remote contingencies. In other than de minimis PRP matters, our records indicate that unresolved PRP exposures should be immaterial.
In de minimis situations, our policy generally is to negotiate a consent decree and to pay any apportioned settlement, enabling us to be effectively relieved of any further liability as a PRP, except for remote contingencies. In other than de minimis PRP matters, our records indicate that unresolved PRP exposures should be immaterial.
Cost estimates to remediate each specific site are developed by assessing (i) the scope of our contribution to the environmental matter, (ii) the scope of the anticipated remediation and monitoring plan and (iii) the extent of other parties’ share of responsibility.
Cost estimates to remediate each specific site are developed by assessing (i) the scope of our contribution to the environmental matter, (ii) the scope of the anticipated remediation and monitoring plan and (iii) the extent of other parties’ share of responsibility. Asset Retirement Obligations.
The combination of our solid, long-term business fundamentals, strong cost position, product innovations and effective management of raw material costs should enable us to manage our business through end-market challenges and to capitalize on opportunities that are expected with favorable market trends in select end markets.
The combination of our solid, long-term business fundamentals, strong cost position, product 57 Albemarle Corporation and Subsidiaries innovations and effective management of raw material costs should enable us to manage our business through end-market challenges and to capitalize on opportunities that are expected with favorable market trends in select end markets.
Significant management judgment is involved in estimating these variables and they include inherent uncertainties since they are forecasting future events. We use a Weighted Average Cost of Capital (“WACC”) approach to determine our discount rate for goodwill recoverability testing. Our WACC calculation incorporates industry-weighted average returns on debt and equity from a market perspective.
Significant management judgment is involved in estimating these variables and they include inherent uncertainties since they are forecasting future events. The Company uses a Weighted Average Cost of Capital (“WACC”) approach to determine our discount rate for goodwill recoverability testing. The WACC calculation incorporates industry-weighted average returns on debt and equity from a market perspective.
Where a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation, although these situations do not occur frequently and are generally not built into our contracts. Any unsatisfied performance obligations are not material.
Where a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation, although these situations are rare and are generally not built into our contracts. Any unsatisfied performance obligations are not material.
Related assets for corresponding offsetting benefits recorded in Other assets totaled $32.4 million and $32.9 million at December 31, 2022 and 2021, respectively. We cannot estimate the amounts of any cash payments during the next twelve months associated with these liabilities and are unable to estimate the timing of any such cash payments in the future at this time.
Related assets for corresponding offsetting benefits recorded in Other assets totaled $73.0 million and $32.4 million at December 31, 2023 and 2022, respectively. We cannot estimate the amounts of any cash payments during the next twelve months associated with these liabilities and are unable to estimate the timing of any such cash payments in the future at this time.
(d) Included amounts for the year ended December 31, 2022 recorded in: • Cost of goods sold - $2.7 million of expense related to one-time retention payments for certain employees during the Catalysts strategic review and business unit realignment, and $0.5 million related to the settlement of a legal matter resulting from a prior acquisition. • SG&A - $4.3 million related to facility closure expenses of offices in Germany, $2.8 million of charges for environmental reserves at sites not part of our operations, $2.8 million of shortfall contributions for our multiemployer plan financial improvement plan, $1.9 million of expense primarily related to one-time retention payments for certain employees during the Catalysts strategic review, partially offset by $4.3 million of gains from the sale of legacy properties not part of our operations. • Other income (expenses), net - $4.3 million net gain related to the fair value adjustment of equity securities in a public company, a $3.0 million gain from the reversal of a liability related to a previous divestiture, a $2.0 million gain relating to the adjustment of an environmental reserve at non-operating businesses we have previously divested and a $0.6 million gain related to a 61 Albemarle Corporation and Subsidiaries settlement received from a legal matter in a prior period, partially offset by a $3.2 million loss resulting from the adjustment of indemnification related to previously disposed businesses.
Included amounts for the year ended December 31, 2022 recorded in: • Cost of goods sold - $2.7 million of expense related to one-time retention payments for certain employees during the Catalysts strategic review and business unit realignment, and $0.5 million related to the settlement of a legal matter resulting from a prior acquisition. • SG&A - $4.3 million primarily related to facility closure expenses of offices in Germany, $2.8 million of charges for environmental reserves at sites not part of our operations, $2.8 million of shortfall contributions for our multiemployer plan financial improvement plan, $1.9 million of expense related to one-time retention payments for certain employees during the Catalysts strategic review, partially offset by $4.3 million of gains from the sale of legacy properties not part of our operations. • Other income (expenses), net - $3.0 million gain from the reversal of a liability related to a previous divestiture, a $2.0 million gain relating to the adjustment of an environmental reserve at non-operating businesses we previously divested and a $0.6 million gain related to a settlement received from a legal matter in a prior period, partially offset by a $3.2 million loss resulting from the adjustment of indemnification related to previously disposed businesses.
Determining the fair value of these items requires management’s judgment and the utilization of independent valuation 63 Albemarle Corporation and Subsidiaries specialists and involves the use of significant estimates and assumptions with respect to the timing and amounts of future cash flows and discount rates, among other items.
Determining the fair value of these items requires management’s judgment and the utilization of independent valuation specialists and involves the use of significant estimates and assumptions with respect to the timing and amounts of future cash flows and discount rates, among other items.
In performance catalyst solutions (“PCS”), we expect growth on a longer-term basis in our organometallics business due to growing global demand for plastics driven by rising standards of living and infrastructure spending. Corporate: We continue to focus on cash generation, working capital management and process efficiencies.
In PCS, we expect growth on a longer-term basis in our organometallics business due to growing global demand for plastics driven by rising standards of living and infrastructure spending. Corporate: We continue to focus on cash generation, working capital management and process efficiencies.
Contributions to our domestic and foreign qualified and nonqualified pension plans, including our supplemental executive retirement plan, are expected to approximate $15 million in 2023. We may choose to make additional pension contributions in excess of this amount.
Contributions to our domestic and foreign qualified and nonqualified pension plans, including our supplemental executive retirement plan, are expected to approximate $14 million in 2024. We may choose to make additional pension contributions in excess of this amount.
In 2019, we completed the acquisition of a 60% interest in MRL’s Wodgina hard rock lithium mine project (“Wodgina Project”) in Western Australia and formed an unincorporated joint venture with MRL, named MARBL Lithium Joint Venture, for the exploration, development, mining, processing and production of lithium and other minerals (other than iron ore and tantalum) from the Wodgina spodumene mine and for the operation of the Kemerton assets in Western Australia.
In 2019, we completed the acquisition of a 60% interest in Wodgina in Western Australia and formed an unincorporated joint venture with MRL, named MARBL Lithium Joint Venture, for the exploration, development, mining, processing and production of lithium and other minerals (other than iron ore and tantalum) from the Wodgina spodumene mine and for the operation of the Kemerton assets in Western Australia.
For the years ended December 31, 2022, 2021 and 2020, we repatriated approximately $1.7 million, $0.9 million and $1.8 million of cash, respectively, as part of these foreign earnings cash repatriation activities.
For the years ended December 31, 2023, 2022 and 2021, we repatriated approximately $2.9 million, $1.7 million and $0.9 million of cash, respectively, as part of these foreign earnings cash repatriation activities.
Amidst these dynamics, we believe our business fundamentals are sound and that we are strategically well-positioned as we remain focused on increasing sales volumes, optimizing and improving the value of our portfolio primarily through pricing and product development, managing costs and delivering value to our customers and shareholders.
Amidst these dynamics, and despite recent downward lithium price pressure, we believe our business fundamentals are sound and that we are strategically well-positioned as we remain focused on increasing sales volumes, optimizing and improving the value of our portfolio primarily through pricing and product development, managing costs and delivering value to our customers and shareholders.
Cash Flow Our cash and cash equivalents were $1.5 billion at December 31, 2022 as compared to $439.3 million at December 31, 2021. Cash provided by operating activities was $1.9 billion, $344.3 million and $798.9 million during the years ended December 31, 2022, 2021 and 2020, respectively.
Cash Flow Our cash and cash equivalents were $889.9 million at December 31, 2023 as compared to $1.5 billion at December 31, 2022. Cash provided by operating activities was $1.3 billion, $1.9 billion and $344.3 million during the years ended December 31, 2023, 2022 and 2021, respectively.
In applying the goodwill impairment test, we initially perform a qualitative test (“Step 0”), where we first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than its carrying value.
In applying the goodwill impairment test, the Company initially performs a qualitative test (“Step 0”), where it first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than its carrying value.
Foreign Corrupt Practices Act and foreign anti-corruption laws); • the occurrence of cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; • the effects of climate change, including any regulatory changes to which we might be subject; • hazards associated with chemicals manufacturing; • the inability to maintain current levels of insurance, including product or premises liability insurance, or the denial of such coverage; • political unrest affecting the global economy, including adverse effects from terrorism or hostilities; • political instability affecting our manufacturing operations or joint ventures; • changes in accounting standards; • the inability to achieve results from our global manufacturing cost reduction initiatives as well as our ongoing continuous improvement and rationalization programs; • changes in the jurisdictional mix of our earnings and changes in tax laws and rates or interpretation; • changes in monetary policies, inflation or interest rates that may impact our ability to raise capital or increase our cost of funds, impact the performance of our pension fund investments and increase our pension expense and funding obligations; • volatility and uncertainties in the debt and equity markets; • technology or intellectual property infringement, including cyber-security breaches, and other innovation risks; • decisions we may make in the future; • future acquisition and divestiture transactions, including the ability to successfully execute, operate and integrate acquisitions and divestitures and incurring additional indebtedness; • expected benefits from proposed transactions; • timing of active and proposed projects; • continuing uncertainties as to the duration and impact of the novel coronavirus (“COVID-19”) pandemic and any future pandemic; • impacts of the military conflict between Russia and Ukraine and the global response to it; • performance of our partners in joint ventures and other projects; • changes in credit ratings; • the inability to realize the benefits of our decision to retain our Catalysts business as a wholly-owned subsidiary and to realign our Lithium and Bromine global business units into a new corporate structure, including Energy Storage and Specialties business units; and • the other factors detailed from time to time in the reports we file with the SEC. 52 Albemarle Corporation and Subsidiaries We assume no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
Foreign Corrupt Practices Act and foreign anti-corruption laws); • the occurrence of cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; • the effects of climate change, including any regulatory changes to which we might be subject; • hazards associated with chemicals manufacturing; • the inability to maintain current levels of insurance, including product or premises liability insurance, or the denial of such coverage; • political unrest affecting the global economy, including adverse effects from terrorism or hostilities; • political instability affecting our manufacturing operations or joint ventures; • changes in accounting standards; • the inability to achieve results from our global manufacturing cost reduction initiatives as well as our ongoing continuous improvement and rationalization programs; • changes in the jurisdictional mix of our earnings and changes in tax laws and rates or interpretation; • changes in monetary policies, inflation or interest rates that may impact our ability to raise capital or increase our cost of funds, impact the performance of our pension fund investments and increase our pension expense and funding obligations; • volatility and uncertainties in the debt and equity markets; • technology or intellectual property infringement, including cyber-security breaches, and other innovation risks; • decisions we may make in the future; • future acquisition and divestiture transactions, including the ability to successfully execute, operate and integrate acquisitions and divestitures and incurring additional indebtedness; • expected benefits from proposed transactions; • timing of active and proposed projects; • impact of any future pandemics; • impacts of the situation in the Middle East and the military conflict between Russia and Ukraine, and the global response to it; • performance of our partners in joint ventures and other projects; • changes in credit ratings; • the inability to realize the benefits of our decision to retain our Ketjen business as a wholly-owned subsidiary and to realign our Lithium and Bromine global business units into a new corporate structure, including Energy Storage and Specialties business units; and • the other factors detailed from time to time in the reports we file with the SEC.
The preferred equity can be redeemed at Grace’s option under certain conditions and will accrue payment-in-kind dividends at an annual rate of 12% beginning on June 1, 2023, two years after issuance. On February 8, 2021, we completed an underwritten public offering of 8,496,773 shares of our common stock at a price to the public of $153.00 per share.
The preferred equity can be redeemed at Grace’s option under certain conditions and began accruing payment-in-kind dividends at an annual rate of 12% on June 1, 2023. On February 8, 2021, we completed an underwritten public offering of 8,496,773 shares of our common stock at a price to the public of $153.00 per share.
Off-Balance Sheet Arrangements In the normal course of business with customers, vendors and others, we have entered into off-balance sheet arrangements, including bank guarantees and letters of credit, which totaled approximately $142.3 million at December 31, 2022.
Off-Balance Sheet Arrangements In the normal course of business with customers, vendors and others, we have entered into off-balance sheet arrangements, including bank guarantees and letters of credit, which totaled approximately $217.2 million at December 31, 2023.
In addition, management uses adjusted EBITDA for business planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. We reported adjusted EBITDA because management believes it provides transparency to investors and enables period-to-period comparability of financial performance.
In addition, management uses adjusted EBITDA for business planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. We have reported adjusted EBITDA because management believes it provides additional useful measurements to review the Company’s operations, provides transparency to investors and enables period-to-period comparability of financial performance.
Our current view is that it is reasonably possible that we could record a decrease in the liability related to uncertain tax positions, relating to a number of issues, up to approximately $0.3 million as a result of closure of tax statutes.
Our current view is that it is reasonably possible that we could record a decrease in the liability related 71 Albemarle Corporation and Subsidiaries to uncertain tax positions, relating to a number of issues, up to approximately $0.4 million as a result of closure of tax statutes.
Our U.S. defined benefit plans for non-represented employees are closed to new participants, with no additional benefits accruing under these plans as participants’ accrued benefits have been frozen. In selecting the discount rates for the U.S. plans, we consider expected benefit payments on a plan-by-plan basis.
We consider available information that we deem relevant when selecting each of these assumptions. Our U.S. defined benefit plans for non-represented employees are closed to new participants, with no additional benefits accruing under these plans as participants’ accrued benefits have been frozen. In selecting the discount rates for the U.S. plans, we consider expected benefit payments on a plan-by-plan basis.
During 2021, cash on hand, cash provided by operations, net cash proceeds of $289.8 million from the sale of the FCS business, $388.5 million of commercial paper borrowings and the $1.5 billion net proceeds from our underwritten public offering of common stock funded debt principal payments of approximately $1.5 billion, early extinguishment of debt fees of $24.9 million, $332.5 million of a settlement of an arbitration ruling for a prior legal matter, $953.7 million of capital expenditures for plant, machinery and equipment, dividends to shareholders of $177.9 million, and pension and postretirement contributions of $30.3 million.
During 2022, cash on hand, cash provided by operations and the proceeds of $2.0 billion in long-term debt and credit agreements funded $1.3 billion of capital expenditures for plant, machinery and equipment, the repayment of long-term debt and credit agreements of $705.0 million, the net repayment of $391.7 million of commercial paper, the final payment of $332.5 million of a settlement of an arbitration ruling for a prior legal matter and dividends to shareholders of $184.4 million During 2021, cash on hand, cash provided by operations, net cash proceeds of $289.8 million from the sale of the FCS business, $388.5 million of commercial paper borrowings and the $1.5 billion net proceeds from our underwritten public offering of common stock funded debt principal payments of approximately $1.5 billion, early extinguishment of debt fees of $24.9 million, $332.5 million of a settlement of an arbitration ruling for a prior legal matter, $953.7 million of capital expenditures for plant, machinery and equipment, dividends to shareholders of $177.9 million, and pension and postretirement contributions of $30.3 million.
We made contributions of approximately $13.4 million to our domestic and foreign pension plans (both qualified and nonqualified) during the year ended December 31, 2022. The liability related to uncertain tax positions, including interest and penalties, recorded in Other noncurrent liabilities totaled $83.7 million and $27.7 million at December 31, 2022 and 2021, respectively.
We made contributions of approximately $15.5 million to our domestic and foreign pension plans (both qualified and nonqualified) during the year ended December 31, 2023. The liability related to uncertain tax positions, including interest and penalties, recorded in Other noncurrent liabilities totaled $220.6 million and $83.7 million at December 31, 2023 and 2022, respectively.
In addition, at December 31, 2022, we had the ability to borrow $1.5 billion under our commercial paper program and the 2018 Credit Agreement, and $179.0 million under other existing lines of credit, subject to various financial covenants under the 2018 Credit Agreement.
In addition, at December 31, 2023, we had the ability to borrow $880.0 million under our commercial paper program and the 2022 Credit Agreement, and $104.1 million under other existing lines of credit, subject to various financial covenants under the 2022 Credit Agreement.
(b) Includes non-curent receivables from Non-Guarantors of $109.3 million at December 31, 2022. (c) Includes current payables to Non-Guarantors of $1.6 billion at December 31, 2022. (d) Includes non-current payables to Non-Guarantors of $6.6 billion at December 31, 2022. The 3.45% Senior Notes are structurally subordinated to the indebtedness and other liabilities of the Non-Guarantors.
(b) Includes non-curent receivables from Non-Guarantors of $2.0 billion at December 31, 2023. (c) Includes current payables to Non-Guarantors of $1.0 billion at December 31, 2023. (d) Includes non-current payables to Non-Guarantors of $6.9 billion at December 31, 2023. The 3.45% Senior Notes are structurally subordinated to the indebtedness and other liabilities of the Non-Guarantors.
(b) Includes noncurrent receivables from Non-Guarantors of $1.2 billion at December 31, 2022. (c) Includes current payables to Non-Guarantors of $1.6 billion at December 31, 2022. (d) Includes non-current payables to Non-Guarantors of $5.8 billion at December 31, 2022. These securities are structurally subordinated to the indebtedness and other liabilities of the Upstream Non-Guarantors.
(b) Includes noncurrent receivables from Non-Guarantors of $1.1 billion at December 31, 2023. (c) Includes current payables to Non-Guarantors of $1.0 billion at December 31, 2023. (d) Includes non-current payables to Non-Guarantors of $6.4 billion at December 31, 2023. These securities are structurally subordinated to the indebtedness and other liabilities of the Upstream Non-Guarantors.
Costs for remediation have been accrued and payments related to sites are charged against accrued liabilities, which at December 31, 2022 totaled approximately $38.2 million, a decrease of $8.4 million from $46.6 million at December 31, 2021.
Costs for remediation have been accrued and payments related to sites are charged against accrued liabilities, which at December 31, 2023 totaled approximately $34.1 million, a decrease of $4.1 million from $38.2 million at December 31, 2022.
The factors in this calculation are largely external to Albemarle and, therefore, are beyond our control. We perform a sensitivity analysis by using a range of inputs to confirm the reasonableness of these estimates being used in the goodwill impairment analysis.
The factors in this calculation are largely external to the Company and, therefore, are beyond its control. The Company performs a sensitivity analysis by using a range of inputs to confirm the reasonableness of these estimates being used in the goodwill impairment analysis.
The proceeds from the issuance of the Commercial Paper Notes are expected to be used for general corporate purposes, including the repayment of other debt of the Company. The 2018 71 Albemarle Corporation and Subsidiaries Credit Agreement is available to repay the Commercial Paper Notes, if necessary.
The proceeds from the issuance of the Commercial Paper Notes are expected to be used for general corporate purposes, including the repayment of other debt of the Company. The 2022 Credit Agreement is available to repay the Commercial Paper Notes, if necessary.
As of December 31, 2022, we have also committed to approximately $350.7 million of payments to third-party vendors in the normal course of business to secure raw materials for our production processes, with approximately $161.2 million to be paid in 2023.
As of December 31, 2023, we have also committed to approximately $324.2 million of payments to third-party vendors in the normal course of business to secure raw materials for our production processes, with approximately $137.4 million to be paid in 2024.
We currently have the ability to transfer up to $540 million in assets under these arrangements, however, at December 31, 2022, there are no amounts outstanding under these arrangements. The non-current portion of our long-term debt amounted to $3.2 billion at December 31, 2022, compared to $2.0 billion at December 31, 2021.
We currently have the ability to transfer up to $540 million in assets under these arrangements. At December 31, 2023, there are $14.3 million of bonds outstanding under these arrangements. The non-current portion of our long-term debt amounted to $3.5 billion at December 31, 2023, compared to $3.2 billion at December 31, 2022.
The increase in cash provided by operating activities in 2022 versus 2021 was primarily due to significantly higher earnings from the Lithium and Bromine segments and higher dividends received from unconsolidated investments, primarily from the Talison joint venture.
The increase in cash provided by operating activities in 2022 versus 2021 was primarily due to significantly higher earnings from the Energy Storage and Specialties segments and higher dividends received from unconsolidated investments, primarily from the Windfield joint venture.
We are focused on profitably growing our globally competitive bromine and derivatives production network to serve all major bromine consuming products and markets.
We are focused on profitably growing our globally competitive production networks to serve all major bromine and lithium specialties consuming products and markets.
While the global corporate bond and bank loan markets remain strong, periods of elevated uncertainty related to the COVID-19 pandemic or future pandamic or global economic and/or geopolitical concerns may limit efficient access to such markets for extended periods of time.
While the global corporate bond and bank loan markets remain strong, periods of elevated uncertainty related to the stability of the banking system, future pandemics or global economic and/or geopolitical concerns may limit efficient access to such markets for extended periods of time.
We have identified three reportable segments according to the nature and economic characteristics of our products as well as the manner in which the information is used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions. During 2022, our reportable business segments consisted of: (1) Lithium, (2) Bromine and (3) Catalysts.
We have identified three reportable segments according to the nature and economic characteristics of our products as well as the manner in which the information is used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions.
Dollar against various currencies Adjusted EBITDA $ 456,916 $ 360,682 $ 96,234 27 % • Favorable pricing impacts and higher sales volume • Increased freight costs, partially due to trucker strikes in Jordan during the fourth quarter of 2022 • Increased utility costs and raw material prices, primarily due to the higher costs of bisphenol A (BPA) • Increased SG&A expenses from higher compensation costs • 2021 included higher production and utility costs of approximately $6 million resulting from the U.S.
Dollar against various currencies Adjusted EBITDA $ 527,318 $ 468,836 $ 58,482 12 % • Favorable pricing impacts and higher sales volume • Increased freight costs, partially due to trucker strikes in Jordan during the fourth quarter of 2022 • Increased utility costs and raw material prices, primarily due to the higher costs of bisphenol A (BPA) • Increased SG&A expenses from higher compensation costs • 2021 included higher production and utility costs of approximately $6 million resulting from the U.S.
In addition, during the years ended December 31, 2022, 2021 and 2020, our consolidated joint venture, JBC, declared dividends of $274.5 million, $274.6 million and $89.9 million, respectively, which resulted in dividends paid to noncontrolling interests of $44.2 million ($53.1 million declared in 2022 was paid in the first quarter of 2023), $96.1 million and $32.1 million, respectively.
In addition, during the years ended December 31, 2023, 2022 and 2021, our consolidated joint venture, JBC, declared dividends of $149.7 million, $274.5 million and $274.6 million, 72 Albemarle Corporation and Subsidiaries respectively, which resulted in dividends paid to noncontrolling interests of $105.6 million, $44.2 million ($53.1 million declared in 2022 was paid in the first quarter of 2023) and $96.1 million, respectively.
Our main focus in the short-term, during the continued uncertainty surrounding the global economy, including caused by the ongoing COVID-19 pandemic and recent inflationary trends, is to continue to maintain financial flexibility by continuing our cost savings initiative, while still protecting our employees and customers, committing to shareholder returns and maintaining an investment grade rating.
Our main focus in the short-term, during the continued uncertainty surrounding the global economy, including lithium market pricing and recent inflationary trends, is to continue to maintain financial flexibility by 76 Albemarle Corporation and Subsidiaries continuing our cost savings initiative, while still protecting our employees and customers, committing to shareholder returns and maintaining an investment grade rating.
Our environmental and safety operating costs charged to expense were $46.3 million, $43.2 million and $44.9 million in 2022, 2021 and 2020, respectively, excluding depreciation of previous capital expenditures, and are expected to be in the same range in the next few years.
Our environmental and safety operating costs charged to expense were $73.0 million, $46.3 million and $43.2 million during the years ended December 31, 2023, 2022 and 2021, respectively, excluding depreciation of previous capital expenditures, and are expected to be in the same range in the next few years.
The weighted-average actual return on our U.S. and foreign pension plan assets was 8.42% versus an expected return of 6.50%.
The weighted-average actual return on our U.S. and foreign pension plan assets was 11.21% versus an expected return of 6.66%.
See Note 17, “Commitments and Contingencies,” for further details.
See Note 17, “Commitments and Contingencies,” for further details on both matters.
We had cash and cash equivalents totaling $1.5 billion as of December 31, 2022, of which $1.3 billion is held by our foreign subsidiaries. This cash represents an important source of our liquidity and is invested in bank accounts or money market investments with no limitations on access.
We had cash and cash equivalents totaling $889.9 million as of December 31, 2023, of which $857.6 million is held by our foreign subsidiaries. This cash represents an important source of our liquidity and is invested in bank accounts or money market investments with no limitations on access.
With respect to any series of securities issued under the Indenture that is subject to the Upstream Guarantee (which series of securities does not include the 2022 Notes), the Upstream Guarantee is, and will be, an unsecured and unsubordinated obligation of the Subsidiary Guarantor, ranking pari passu with all other existing and future unsubordinated and unsecured indebtedness of the Subsidiary Guarantor.
With respect to any series of securities issued under the Indenture that is subject to the Upstream Guarantee (which series of securities does not include the 2022 Notes), the Upstream Guarantee is, and will be, an unsecured and unsubordinated obligation of the Subsidiary Guarantor, ranking pari passu with all other existing and future unsubordinated and unsecured indebtedness of the Subsidiary Guarantor. 80 Albemarle Corporation and Subsidiaries All securities currently outstanding under the Indenture (other than the 2022 Notes) are effectively subordinated to all existing and future indebtedness and other liabilities of the Parent’s Subsidiaries other than the Subsidiary Guarantor.
In addition, Interest and financing expenses for the year ended December 31, 2022 includes the correction of an out of period error of $17.5 million related to the overstatement of capitalized interest in prior periods.
See Note 14, “Long-term Debt,” for additional information. In addition, Interest and financing expenses for the year ended December 31, 2022 includes the correction of an out of period error of $17.5 million related to the overstatement of capitalized interest in prior periods.
Of the $528.1 million total pension and postretirement assets at December 31, 2022, $68.7 million, or approximately 13%, are measured using the net asset value as a practical expedient. Gains or losses attributable to these assets are recognized in the consolidated balance sheets as either an increase or decrease in plan assets.
Of the $549.6 million total pension and postretirement assets at December 31, 2023, $80.5 million, or approximately 15%, are measured using the net asset value as a practical expedient. Gains or losses attributable to these assets are recognized in the consolidated balance sheets as either an increase or decrease in plan assets.
We test our recorded goodwill for impairment in the fourth quarter of each year or upon the occurrence of events or changes in circumstances that would more likely than not reduce the fair value of our reporting units below their carrying amounts.
The Company tests its recorded goodwill for impairment in the fourth quarter of each year or upon the occurrence of events or changes in circumstances that would more likely than not reduce the fair value of its reporting units below their carrying amounts. The Company performed its annual goodwill impairment test as of October 31, 2023.
At December 31, 2022 and 2021, our cash and cash equivalents included $1.3 billion and $374.0 million, respectively, held by our foreign subsidiaries.
At December 31, 2023 and 2022, our cash and cash equivalents included $857.6 million and $1.3 billion, respectively, held by our foreign subsidiaries.
At December 31, 2022, the weighted-average discount rate for the U.S. and foreign pension plans increased to 5.46% and 4.04%, respectively, from 2.86% and 1.44%, respectively, at December 31, 2021 to reflect market conditions as of the December 31, 2022 measurement date. The discount rate for the OPEB plans at December 31, 2022 and 2021 was 5.45% and 2.85%, respectively.
At December 31, 2023, the weighted-average discount rate for the U.S. and foreign pension plans decreased to 5.21% and 3.73%, respectively, from 5.46% and 4.04%, respectively, at December 31, 2022 to reflect market conditions as of the December 31, 2023 measurement date. The discount rate for the OPEB plans at December 31, 2023 and 2022 was 5.21% and 5.45%, respectively.
Results for the year ended December 31, 2022 include an actuarial gain of $37.0 million ($26.5 million after income taxes), as compared to a loss of $56.9 million ($43.6 million after income taxes) for the year ended December 31, 2021.
Results for the year ended December 31, 2023 include an actuarial gain of $10.2 million ($8.3 million after income taxes), as compared to a loss of $37.0 million ($26.5 million after income taxes) for the year ended December 31, 2022.
Future cash flows for all reporting units include assumptions about revenue growth rates, adjusted EBITDA margins, discount rate as well as other economic or industry-related factors. For the Refining Solutions reporting unit, the revenue growth rates, adjusted EBITDA margins and the discount rate were deemed to be significant assumptions.
Future cash flows for all reporting units include assumptions about revenue growth rates, adjusted EBITDA margins, discount rate as well as other economic or industry-related factors.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAll other gains and losses on foreign currency forward contracts not designated as an effective hedging instrument are recognized in Other income (expenses), net, and generally do not have a significant impact on results of operations. 78 Albemarle Corporation and Subsidiaries At December 31, 2022, our financial instruments subject to foreign currency exchange risk consisted of foreign currency forward contracts with an aggregate notional value of $2.9 billion and with a fair value representing a net asset position of $2.8 million.
Biggest changeAll other gains and losses on foreign currency forward contracts not designated as an effective hedging instrument are recognized in Other income (expenses), net, and generally do not have a significant impact on results of operations.
On December 18, 2014, the carrying value of our 1.875% Euro-denominated senior notes was designated as an effective hedge of our net investment in foreign subsidiaries where the Euro serves as the functional currency, and beginning on the date of designation, gains or losses on the revaluation of these senior notes to our reporting currency have been were recorded in Accumulated other comprehensive loss.
On December 18, 2014, the carrying value of our 1.875% Euro-denominated senior notes was designated as an effective hedge of our net investment in foreign subsidiaries where the Euro serves as the functional currency, and beginning on the date of designation, gains or losses on the revaluation of these senior notes to our reporting currency have been recorded in Accumulated other comprehensive loss.
We may enter into interest rate swaps, collars or similar instruments with the objective of reducing interest rate volatility relating to our borrowing costs. Our raw materials are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors.
We may enter into interest rate swaps, collars or similar instruments with the objective of reducing interest rate volatility relating to our borrowing costs. Our raw materials are subject to price volatility caused by weather, supply and demand conditions, political and economic variables and other unpredictable factors.
We conducted a sensitivity analysis on the fair value of our foreign currency hedge portfolio assuming an instantaneous 10% change in select foreign currency exchange rates from their levels as of December 31, 2022, with all other variables held constant. A 10% appreciation of the U.S.
We conducted a sensitivity analysis on the fair value of our foreign currency hedge portfolio assuming an instantaneous 10% change in select foreign currency exchange rates from their levels as of December 31, 2023, with all other variables held constant. A 10% appreciation of the U.S.
We seek to limit our exposure by entering into long-term contracts when available, and we seek price increase limitations through contracts. These contracts do not have a significant impact on our results of operations. 79 Albemarle Corporation and Subsidiaries
We seek to limit our exposure by entering into long-term contracts when available, and we seek price increase limitations through contracts. These contracts do not have a significant impact on our results of operations. 83 Albemarle Corporation and Subsidiaries
The sensitivity of the fair value of our foreign currency hedge portfolio represents changes in fair values estimated based on market conditions as of December 31, 2022, without reflecting the effects of underlying anticipated transactions.
The sensitivity of the fair value of our foreign currency hedge portfolio represents changes in fair values estimated based on market conditions as of December 31, 2023, without reflecting the effects of underlying anticipated transactions.
We do not utilize financial instruments for trading or other speculative purposes. The primary method we use to reduce foreign currency exposure is to identify natural hedges, in which the operating activities denominated in respective currencies across various subsidiaries balance in respect to timing and the underlying exposures.
However, we do not anticipate nonperformance by the counterparties. We do not utilize financial instruments for trading or other speculative purposes. The primary method we use to reduce foreign currency exposure is to identify natural hedges, in which the operating activities denominated in respective currencies across various subsidiaries balance in respect to timing and the underlying exposures.
These borrowings represented less than 1% and 16% of total outstanding debt and bore average interest rates of 0.07% and 0.40% at December 31, 2022 and 2021, respectively. A hypothetical 100 basis point increase in the average interest rate applicable to these borrowings would change our annualized interest expense by approximately $0.1 million as of December 31, 2022.
These borrowings represented 15% and less than 1% of total outstanding debt and bore average interest rates of 5.76% and 0.07% at December 31, 2023 and 2022, respectively. A hypothetical 100 basis point increase in the average interest rate applicable to these borrowings would change our annualized interest expense by approximately $6.5 million as of December 31, 2023.
The principal objective of such contracts is to minimize the financial impact of changes in foreign currency exchange rates. The counterparties to these contractual agreements are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties. However, we do not anticipate nonperformance by the counterparties.
The principal objective of such contracts is to 82 Albemarle Corporation and Subsidiaries minimize the financial impact of changes in foreign currency exchange rates. The counterparties to these contractual agreements are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties.
We are exposed to changes in interest rates that could impact our results of operations and financial condition. We manage global interest rate and foreign exchange exposure as part of our regular operational and financing strategies. We had variable interest rate borrowings of $14.4 million and $393.7 million outstanding at December 31, 2022 and 2021, respectively.
We are exposed to changes in interest rates that could impact our results of operations and financial condition. We manage global interest rate and foreign exchange exposure as part of our regular operational and financing strategies. We had variable interest rate borrowings of $650.2 million and $3.0 million outstanding at December 31, 2023 and 2022, respectively.
Dollar against foreign currencies that we hedge would result in a decrease of approximately $30.0 million in the fair value of our foreign currency forward contracts. A 10% depreciation of the U.S. Dollar against these foreign currencies would result in an increase of approximately $15.2 million in the fair value of our foreign currency forward contracts.
Dollar against foreign currencies that we hedge would result in a decrease of approximately $0.3 million in the fair value of our foreign currency forward contracts. A 10% depreciation of the U.S. Dollar against these foreign currencies would result in a decrease of approximately $86.1 million in the fair value of our foreign currency forward contracts.
Added
At December 31, 2023, our financial instruments subject to foreign currency exchange risk consisted of foreign currency forward contracts with an aggregate notional value of $8.1 billion and with a fair value representing a net asset position of $12.1 million.

Other ALB 10-K year-over-year comparisons