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What changed in Albemarle Corporation's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Albemarle Corporation's 2023 and 2024 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 2024 report.

+670 added−639 removedSource: 10-K (2025-02-12) vs 10-K (2024-02-15)

Top changes in Albemarle Corporation's 2024 10-K

670 paragraphs added · 639 removed · 485 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

47 edited+16 added−15 removed47 unchanged
Biggest changeRegulation Our business is subject to a broad array of employee health and safety laws and regulations, including those under the OSHA. We also are subject to similar state laws and regulations as well as local laws and regulations for our non-U.S. operations.
Biggest changeWe also are subject to similar state laws and regulations as well as local laws and regulations for our non-U.S. operations. 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.
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.
Raw Materials and Significant Supply Sources 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.
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.
Albemarle is a world leader 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.
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.
For information regarding our unconsolidated joint ventures, see Note 8, “Investments,” to our consolidated financial statements included in Part II, Item 8 of this report.
In addition, we have established employee groups, known as Connect groups, to promote an atmosphere of inclusion and encouragement in which every employee’s voice can be heard. These Connect groups provide opportunities for employees to share their backgrounds, experiences, and beliefs, and to use them to benefit others through mentoring and volunteering in the local community, among other activities.
In addition, we have established employee resource groups, known as Connect groups, to promote an atmosphere of inclusion and encouragement in which every employee’s voice can be heard. These Connect groups provide opportunities for employees to share their backgrounds and experiences, and to use them to benefit others through mentoring and volunteering in the local community, among other activities.
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.
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, Israel Chemicals Ltd and Arcadium Lithium, as well as producers in India and China.
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.
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 alkylation catalysts; (ii) fluidized catalytic cracking (“FCC”) catalysts and additives; and (iii) performance catalyst solutions (“PCS”), which is primarily composed of organometallics and curatives.
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 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, 2024, we served approximately 1,900 customers in approximately 70 countries.
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 Sources 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.
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.
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 (from a 2019 baseline), and growing our Energy Storage business in a carbon-intensity neutral manner through 2030.
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.
Energy Storage Segment Our Energy Storage business enables 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.
We provide solutions to companies pursuing alternative fuel products and technologies (such as renewable fuels), emission control technologies (including mercury emissions), alternative transportation vehicles and energy storage technologies and other similar solutions.
We provide solutions to companies pursuing alternative fuel products and technologies (such as renewable fuels), pollution control technologies (including mercury emissions), alternative transportation vehicles and energy storage technologies and other similar solutions.
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.
Ltd., a company incorporated in Australia (“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.
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.
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.
The Executive Compensation Committee of the Board has the overall responsibility of evaluating the performance of the CEO and approving the compensation structure for senior management and other key employees.
The Executive Compensation and Talent Development Committee of the Board has the overall responsibility of evaluating the performance of the CEO and approving the compensation structure for senior management and other key employees.
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.
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. Grace & Co. and BASF Corporation.
Our goal is to reduce our intensity of freshwater usage by 25% by 2030 in areas of high or extremely high water risk as defined by the World Resources Institute, such as Chile and Jordan. Our businesses are dependent on the availability and responsible management of natural resources.
Our goal is to reduce our intensity of freshwater usage by 25% by 2030 (from a 2019 baseline) in areas of high or extremely high water risk, such as Chile and Jordan, as defined by the World Resources Institute. Our businesses are dependent on the availability and responsible management of natural resources.
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.
During the fourth quarter of 2023, Albemarle paid MRL approximately $380 million in cash, which includes $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.
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.
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. 3 Albemarle Corporation and Subsidiaries Raw Materials and Significant Supply Sources We obtain lithium: (a) by purchasing lithium concentrate from our 49%-owned joint venture, Windfield Holdings Pty. Ltd.
In addition, we hold mineral rights in defined areas of Kings Mountain, North Carolina with available lithium resources and we own undeveloped land with access to a lithium resource in Antofalla, within the Catamarca Province of Argentina. As necessary, we can also obtain lithium from other sources. See Item 2. Properties, for additional disclosures of our lithium mineral properties.
In addition, we hold mineral rights in defined areas of Kings Mountain, North Carolina with available lithium resources and we own undeveloped land with access to a lithium resource in Antofalla, within the Catamarca Province of Argentina. See Item 2. Properties, for additional disclosures of our lithium mineral properties.
We also invest in our people through enhanced training and development opportunities and by seeking to foster a diverse workforce, equitable workplace and an inclusive culture that enables employees to reach their full potential.
We also invest in our people through enhanced training and development opportunities and by seeking to foster an equitable workplace and an inclusive culture that enables employees to feel a sense of belonging and reach their full potential.
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.
As of December 31, 2024, we owned more than 1,650 active patents and more than 400 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.
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.
Product performance, quality, price, contract terms, product and process improvements, specialized customer services, the ability to attract and retain skilled technical support, and the maintenance of a good safety record are the primary factors to compete effectively in the catalysts marketplace.
We manage our natural resources to operate efficiently and preserve the environment for our local communities and the world. Our natural resource management includes mineral resource transparency with local communities, governments, regulators and other key stakeholders, as well as partnering with the Initiative for Responsible Mining Assurance for our lithium production for the assurance of responsible mining.
We manage our natural resources to operate efficiently and preserve the environment for our local communities and the world. Our natural 8 Albemarle Corporation and Subsidiaries resource management includes mineral resource transparency with local communities, governments, regulators and other key stakeholders, as well as leveraging industry best practices in lithium production for the assurance of responsible mining.
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.
We believe employees should be fairly 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 to ensure that they are fair and equitable.
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.
Ongoing compliance with such laws and regulations is an important consideration for us. 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 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.
We also include health and safety metrics in our annual incentive plan to further incentivize our employees’ commitment to safety. In 2024, we maintained 5 Albemarle Corporation and Subsidiaries our Occupational Safety and Health Act (“OSHA”) occupational injury and illness incident rate of 0.13 for our employees and nested contractors, compared to 0.14 in 2023.
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.
As of December 31, 2024, we had approximately 8,300 employees, including employees of our consolidated joint ventures, of whom 3,300, or 39%, are employed in the U.S. and the Americas; 2,900, or 35%, are employed in Asia Pacific; 1,500, or 19%, are employed in Europe; and 600, or 7%, are employed in the Middle East or other areas.
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.
Approximately 28% of these employees are represented by unions or works councils. We strive to foster positive relationships with our employees and their representatives. 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 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.
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. Ketjen offers unique refinery catalysts to crack and treat the lightest to the heaviest feedstocks while meeting refinery yield and product needs.
Grace & Co., BASF Corporation and China Petrochemical Corporation (Sinopec). In the PCS market, our major competitors include Nouryon, Lanxess AG and Arxada.
In the PCS market, our major competitors include Nouryon, Lanxess AG and Arxada.
We also provide leadership development through performance coaching, comprehensive feedback, plant training including health, safety and environmental topics, and experiential development and mentoring. Our leadership development is a cornerstone to our talent management strategy.
This enables us to efficiently and effectively ensure that we have the right talent pipeline to drive Albemarle’s success into the future. We also provide leadership development through performance coaching, comprehensive feedback, plant training including health, safety and environmental topics, and experiential development and mentoring. Our leadership development is a cornerstone to our talent management strategy.
The Executive Compensation Committee determines performance goals under our incentive program annually to ensure our executive officers execute on short-term financial and strategic initiatives that drive our business strategy and long-term shareholder value. Sales, Marketing and Distribution We have an international strategic account program that uses cross-functional teams to serve large global customers.
The Executive Compensation and Talent Development Committee determines performance goals under our incentive program annually to ensure our executive officers execute on short-term financial and strategic initiatives that drive our business strategy and long-term shareholder value.
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”).
Recent Acquisitions, Joint Ventures and Divestitures The following is a summary of our significant acquisitions and joint venture agreement restructurings 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”).
We provide our customers with customized FCC catalyst systems, which assist in the high yield cracking of refinery petroleum streams into derivative, higher-value products such as transportation fuels and petrochemical feedstocks like propylene.
We continuously seek to add more value to refinery operations by offering HPC products that meet our customers’ requirements for profitability and performance in the very demanding refining market. 4 Albemarle Corporation and Subsidiaries We provide our customers with customized FCC catalyst systems, which assist in the high yield cracking of refinery petroleum streams into derivative, higher-value products such as transportation fuels and petrochemical feedstocks like propylene.
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.
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, India and South-East Asia. Advances in sustainable aviation fuels, petroleum products and renewable diesel are expected to continue.
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.
Water is a critical input to Albemarle’s production operations. 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.
Human Capital Our main human capital management objectives are to attract, retain and develop the highest quality talent and ensure they feel safe, supported and empowered to do the best work they can do.
Human Capital Our main human capital management objectives are to attract, retain and develop the highest quality talent and ensure they feel safe, supported and empowered to do the best work they can do. We believe providing an inclusive workplace facilitates opportunities for innovation, fosters good decision-making practices, and promotes employee engagement and high productivity across our organization.
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.
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.
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.
Our employees, contractors, and visitors are instructed to follow a comprehensive set of written health and safety policies and procedures at both corporate and local sites.
Our business and our customers are subject to significant requirements under the European Community Regulation for the Registration, Evaluation, Authorization and Restriction of Chemicals (“REACH”).
We finished 2024 with an OSHA occupational injury and illness incident rate of 0.13 for Albemarle employees and nested contractors, compared to 0.14 in 2023. Our business and our customers are subject to significant requirements under the European Community Regulation for the Registration, Evaluation, Authorization and Restriction of Chemicals (“REACH”).
Environmental Regulation We are subject to numerous foreign, federal, state and local environmental laws and regulations, including those governing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated properties. Ongoing compliance with such laws and regulations is an important consideration for us.
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. 7 Albemarle Corporation and Subsidiaries Environmental Regulation We are subject to numerous foreign, federal, state and local environmental laws and regulations, including those governing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated properties.
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.
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, 2024.
This program emphasizes creative strategies to improve and strengthen strategic customer relationships with emphasis on creating value for customers and promoting post-sale service. Complementing this program are regional Albemarle sales and technical personnel around the world who serve numerous additional customers globally. We also utilize commissioned sales representatives and specialists in specific market areas when necessary or required by law.
Complementing this program are regional Albemarle sales and technical personnel who serve our global customer base. We also utilize sales representatives and specialists in specific market areas when necessary or required by law.
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 .
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. These transactions reflect our commitment to investing in future growth of our high priority businesses. Available Information Our website address is www.albemarle.com .
In addition, they improve product properties by adding hydrogen and in some cases improve the performance of downstream catalysts and processes. We continuously seek to add more value to refinery operations by offering HPC products that meet our customers’ requirements for profitability and performance in the very demanding refining market.
In addition, they improve product properties by adding hydrogen and in some cases improve the performance of downstream catalysts and processes.
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.
In addition, we provide all employees and their dependents with access to our Employee Assistance Program, which provides free mental and behavioral health resources. Talent and Culture Investing in talent is a critical process for Albemarle because it allows us to be proactive and anticipate key organizational needs for talent and capabilities.
Removed
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.
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Effective November 1, 2024, we transitioned our operating structure from two core global business units - Energy Storage and Specialties - to a fully integrated functional model designed to increase agility, deliver significant cost savings and maintain long-term competitiveness. In addition, our Ketjen business continues to be operated under a separate, wholly-owned subsidiary.
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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.
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We will continue to report results across three existing operating segments: Energy Storage, Specialties and Ketjen. Business Segments During 2024, we managed and reported our operations under three reportable segments: Energy Storage, Specialties and Ketjen. The segments are organized based on their similar markets, customers, economic characteristics and production processes.
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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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The lithium concentrate used in our lithium specialties products are originally sourced from the same sources as the Energy Storage lithium concentrate noted above.
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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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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 these markets is driven by a variety of factors.
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We believe providing a diverse, equal and inclusive workplace facilitates opportunities for innovation, fosters good decision-making practices, and promotes employee engagement and high productivity across our organization.
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Our internal incident and issues management system gives all employees the ability to report incidents anonymously without fear of retaliation, and allow us to be more proactive in developing safety programs that address at-risk conditions or behaviors, which could lead to an incident. We routinely audit ourselves against our policies, procedures and standards, using internal and third-party resources.
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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.
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It is important for us to have a workforce of highly engaged employees who understand how their work connects to Albemarle’s purpose and values. We have measured employee engagement through an empowerment survey, which tracks job satisfaction and how likely an employee is to recommend Albemarle to people they know.
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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.
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In addition, we are committed to empowering and supporting the next generation of talent in their career development by engaging in various initiatives to attract people from all backgrounds to our internship, co-op and rotational development programs. Our incentive program is designed to provide incentives and rewards for achieving Albemarle’s annual goals and objectives.
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Investment in Talent Investing in talent is a critical process for Albemarle because it allows us to be proactive and anticipate key organizational needs for talent and capabilities. This enables us to efficiently and effectively ensure that we have the right talent pipeline to drive Albemarle’s success into the future.
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We develop holistic inclusion and belonging initiatives to foster a values-driven workplace where all individuals feel a sense of belonging as they grow in their professions.
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We also invest in our people through enhanced training and development opportunities and by seeking to foster a diverse workforce, equitable workplace and an inclusive culture that enables employees to reach their full potential. Our incentive program is designed to provide incentives and rewards for achieving Albemarle’s annual goals and objectives.
Added
We continue to pursue strategies and partnerships to attract highly qualified applicants from all backgrounds, offer cross-cultural learning sessions for our employees, and assess promotion, retention, and turnover data to identify potential opportunities for greater inclusion efforts. We seek to provide employees with a desirable workplace that will enable us to attract and retain top talent.
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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.
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Human Rights Albemarle is guided by its Code of Conduct, which sets forth the high ethical standards we have for all employees and encourages a ‘Speak Up’ culture. We understand our responsibility to uphold the human rights of our employees, workers in our supply chain, members of our communities and other stakeholders.
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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.
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We recognize the human rights of our stakeholders as expressed in the International Bill of Human Rights and the International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work.
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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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We acknowledge the human rights of Indigenous Peoples in culturally sensitive locations, such as Chile and Western Australia, where our sites are located on Indigenous Peoples’ lands through clear policy commitments, due diligence initiatives, formal community agreements and accessible grievance mechanisms for reporting concerns. Albemarle offers multiple avenues for employees and stakeholders to raise concerns.
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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.
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We maintain internal investigation standards to thoroughly review and address concerns that may arise. We take measures to maintain confidentiality, protect the integrity of all investigations, and prevent retaliation against those who speak up in good faith. In conducting investigations, we are committed to the U.N. Guiding Principles on Business and Human Rights.
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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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Sales, Marketing and Distribution We have an international strategic account program that uses cross-functional teams to serve large global customers. This program emphasizes creative strategies to improve and strengthen strategic customer relationships with emphasis on creating 6 Albemarle Corporation and Subsidiaries value for customers and promoting post-sale service.
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(“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.
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The Company believes the duration of its intellectual property rights is adequate relative to the expected lives of its products and services. Regulation Our business is subject to a broad array of employee health and safety laws and regulations, including those under the OSHA.
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We are investing in new process technologies to reduce our water footprint and expand capacity sustainably in locations with high water risk.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRisks 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. • Our inability to secure key raw materials, or to pass through increases in costs and expenses for other raw materials and energy, on a timely basis or at all, including due to climate change, could have an adverse effect on the margins of our products and our results of operations. • Competition within our industry may place downward pressure on the prices and margins of our products and may adversely affect our businesses and results of operations. • Our research and development efforts may not succeed in addressing changes in our customers’ needs, and our competitors may develop more effective or successful products. • The development of non-lithium battery technologies could adversely affect us. • Downturns in our customers’ industries, many of which are cyclical, could adversely affect 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. • Regulation, or the threat of regulation, of some of our products could have an adverse effect on our sales and profitability. 9 Albemarle Corporation and Subsidiaries • We could be subject to damages based on claims brought against us by our customers or lose customers as a result of the failure of our products to meet certain quality specifications. • Our business is subject to hazards common to chemical and natural resource extraction businesses, any of which could injure our employees or other persons, damage our facilities or other properties, interrupt our production and adversely affect our reputation and results of operations. • Our business could be adversely affected by environmental, health and safety laws and regulations. • We may be subject to indemnity claims and liable for other payments relating to properties or businesses we have divested. • We could be adversely affected by violations of the U.S.
Biggest changeThe development of our mines and operations are also subject to other project specific risks. • Downturns in our customers’ industries, which may be cyclical or affected by changes in governing administrations, could adversely affect 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. • Regulation, or the threat of regulation, of some of our products could have an adverse effect on our sales and profitability. • We could be subject to damages based on claims brought against us by our customers or lose customers as a result of the failure of our products to meet certain quality specifications. • Our business is subject to hazards common to chemical and natural resource extraction businesses, any of which could injure our employees or other persons, damage our facilities or other properties, interrupt our production and adversely affect our reputation and results of operations. • Our business could be adversely affected by environmental, health and safety laws and regulations. • Our operations could be adversely affected by local communities and/or other stakeholders. • We may be subject to indemnity claims and liable for other payments relating to properties or businesses we have divested. • We could be adversely affected by violations of the U.S.
We could be subject to damages based on claims brought against us by our customers or lose customers as a result of the failure of our products to meet certain quality specifications. Our products enable important performance attributes to our customers’ products.
We could be subject to damages based on claims brought against us by our customers or lose customers as a result of the failure of our products to meet certain quality specifications. Our products enable important performance attributes of our customers’ products.
Foreign Corrupt Practices Act and similar foreign anti-corruption laws, and in the past have paid fines in order to resolve self-reported potential violations of such laws. • We are subject to extensive foreign government regulation that can negatively impact our business. • Our inability to protect our intellectual property rights, or being accused of infringing on intellectual property rights of third parties, could have a material adverse effect on our business, financial condition and results of operations. • Our inability to acquire or develop additional lithium reserves that are economically viable could have a material adverse effect on our future profitability. • There is risk to the growth of lithium markets. • Demand and market prices for lithium will greatly affect the value of our investment in our lithium resources and our revenues and profitability generally. • If we are unable to retain key personnel or attract new skilled personnel, it could have an adverse effect on our business. • 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. • Our joint ventures may not operate according to their business plans if our partners fail to fulfill their obligations, which may adversely affect our results of operations and may force us to dedicate additional resources to these joint ventures.
Foreign Corrupt Practices Act and similar foreign anti-corruption laws, and in the past have paid fines in order to resolve self-reported potential violations of such laws. • We are subject to extensive foreign government regulation that can negatively impact our business. • Our inability to protect our intellectual property rights, or being accused of infringing on intellectual property rights of third parties, could have a material adverse effect on our business, financial condition and results of operations. • Our inability to acquire or develop additional lithium reserves that are economically viable could have a material adverse effect on our future profitability. • There is risk to the growth of lithium markets. • Demand and market prices for lithium will greatly affect the value of our investment in our lithium resources and conversion plants and our revenues and profitability generally. • If we are unable to retain key personnel or attract new skilled personnel, it could have an adverse effect on our business. • 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. • Our joint ventures may not operate according to their business plans if our partners fail to fulfill their obligations, which may adversely affect our results of operations and may force us to dedicate additional resources to these joint ventures.
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.
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.
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.
Many of our customers are in industries, including the electronics, building and construction, oilfield and automotive industries, that are cyclical in nature, or which are subject to secular market downturns or may face adverse effects of evolving regulatory regimes.
Additionally, lawsuits or regulatory actions based on allegations that certain public statements regarding ESG-related matters by companies are false and misleading “greenwashing” campaigns could adversely impact our operations and could have an adverse impact on our financial condition. We may be unable to satisfactorily meet evolving standards, regulations and disclosure requirements related to ESG.
Additionally, lawsuits or regulatory actions based on allegations that certain public statements regarding sustainability-related matters by companies are false and misleading “greenwashing” campaigns could adversely impact our operations and could have an adverse impact on our financial condition. We may be unable to satisfactorily meet evolving standards, regulations and disclosure requirements related to sustainability.
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.
Accordingly, these hazards and their consequences could adversely affect our reputation and 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. 16 Albemarle Corporation and Subsidiaries Our business could be adversely affected by environmental, health and safety laws and regulations.
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.
We conduct a substantial portion of our business outside the U.S., with approximately 83% of our net sales to foreign countries. We operate in, 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.
In recent years, there has been an increased focus from stakeholders, regulators and the public in general on ESG matters, including greenhouse gas emissions and climate-related risks, renewable energy, water stewardship, waste management, diversity, equality and inclusion, responsible sourcing and supply chain, human rights, and social responsibility.
In recent years, there has been an increased focus from stakeholders, regulators and the public in general on sustainability matters, including greenhouse gas emissions and climate-related risks, renewable energy, water stewardship, waste management, diversity, equality and inclusion, responsible sourcing and supply chain, human rights, and social responsibility.
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.
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 us and may have greater financial resources.
Given our commitment to ESG, we actively manage these issues and have established and publicly announced certain goals, commitments, and targets which we may refine further in the future. These goals, commitments, and targets reflect our current plans and aspirations and are not guarantees that we will be able to achieve them.
Given our commitment to sustainability, we actively manage these issues and have established and publicly announced certain goals, commitments, and targets which we may refine further in the future. These goals, commitments, and targets reflect our current plans and aspirations and are not guarantees that we will be able to achieve them.
Following the Wodgina acquisition in 2019, 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 in 2022.
General Risk Factors • Adverse conditions in the economy, and volatility and disruption of financial markets can negatively impact our customers, suppliers and other business partners and therefore have a material adverse effect on our business and results of operations. • Our business and operations could suffer in the event of cybersecurity breaches, information technology system failures, or network disruptions. • The occurrence or threat of extraordinary events, including domestic and international terrorist attacks, may disrupt our operations and decrease demand for our products. • National or international disputes, political instability, terrorism war or armed hostilities, could impact our results of operations. • 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. • Our insurance may not fully cover all potential exposures. • We may be exposed to certain regulatory and financial risks related to climate change. • Failure to meet environmental, social and governance (“ESG”) expectations or standards or achieve our ESG goals could adversely affect our business, results of operations, financial condition, or stock price.
General Risk Factors • Adverse conditions in the economy, and volatility and disruption of financial markets can negatively impact our customers, suppliers and other business partners and therefore have a material adverse effect on our business and results of operations. • Our business and operations could suffer in the event of cybersecurity breaches, information technology system failures, or network disruptions. • The occurrence or threat of extraordinary events, including domestic and international terrorist attacks, may disrupt our operations and decrease demand for our products. • National or international disputes, political instability, terrorism war or armed hostilities, could impact our results of operations. • 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. • Our insurance may not fully cover all potential exposures. • We may be exposed to certain regulatory and financial risks related to climate change. • Failure to meet sustainability expectations or standards or achieve our sustainability goals could adversely affect our business, results of operations, financial condition, or stock price.
If customers and potential customers are dissatisfied with our ESG goals or our progress towards meeting them, then they may choose not to buy our products and services, which could lead to reduced revenue, and our reputation could be harmed.
If customers and potential customers are dissatisfied with our sustainability goals or our progress towards meeting them, then they may choose not to buy our products and services, which could lead to reduced revenue, and our reputation could be harmed.
Increases in the costs of our products could result in a decrease in their overall demand; additionally, customers may seek products with lower regulatory compliance requirements, which could also result in a decrease in the demand of certain products subject to the REACH regulations.
Increases in the costs of our products could result in a decrease in their overall demand; additionally, customers may seek products with lower regulatory compliance requirements, which could also result in a decrease in the demand of certain products subject to the REACH regulations. The U.S.
Meeting the ESG goals we have set and publicly disclosed will require significant resources and expenditures, and we may face pressure to make commitments, establish additional goals, and take actions to meet them beyond our current plans.
Meeting the sustainability goals we have set and publicly disclosed will require significant resources and expenditures, and we may face pressure to make commitments, establish additional goals, and take actions to meet them beyond our current plans.
In addition, we could experience reduced revenue and reputational harm if we are targeted by anti-ESG groups or influential individuals who disagree with our public positions on social or environmental issues.
In addition, we could experience reduced revenue and reputational harm if we are targeted by anti-sustainability groups or influential individuals who disagree with our public positions on social or environmental issues.
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.
Impacts of climate change include 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.
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.
Climate changes and unprecedented weather events may pose a risk to business operations in vulnerable areas. In some regions including China, 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.
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.
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. 12 Albemarle Corporation and Subsidiaries 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.
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.
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.
These import restrictions came into effect on June 21, 2022. While we are 12 Albemarle Corporation and Subsidiaries not presently aware of any direct impacts these restrictions will have on its supply chain, the UFLPA may materially and negatively impact our ability to import the goods and products we rely on to manufacture our products and operate our business.
These import restrictions came into effect on June 21, 2022. While we are not presently aware of any direct impacts these restrictions will have on its supply chain, the UFLPA may materially and negatively impact our ability to import the goods and products we rely on to manufacture our products and operate our business.
We believe we have met these requirements but additional federal and local regulations that limit the distribution of hazardous materials are being considered. We ship and receive materials that are classified as hazardous. Bans on movement of hazardous materials through cities, like Washington, D.C., could affect the efficiency of our logistical operations.
We believe we have met these requirements but additional federal and local regulations that limit the distribution of hazardous materials are being considered. We ship and receive materials that are classified as hazardous. Bans on movement of hazardous materials through cities, like Washington, D.C., could affect the efficiency of our logistical 27 Albemarle Corporation and Subsidiaries operations.
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.
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. 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.
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.
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. Our business and operations could suffer in the event of cybersecurity breaches, information technology system failures, or network disruptions.
Evolving stakeholder expectations, regulatory obligations, economic conditions and our efforts to manage these issues, report on them, and accomplish our goals present numerous operational, regulatory, reputational, financial, legal, and other risks, any of which could have a material adverse impact, including on our reputation and stock price.
Evolving stakeholder expectations, regulatory obligations, economic conditions and our efforts to manage these issues, report on them, and accomplish our goals 29 Albemarle Corporation and Subsidiaries present numerous operational, regulatory, reputational, financial, legal, and other risks, any of which could have a material adverse impact, including on our reputation and stock price.
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. • We will need a significant amount of cash to service our indebtedness and our ability to generate cash depends on many factors beyond our control. • Because a significant portion of our operations is conducted through our subsidiaries and joint ventures, our ability to service our debt may be dependent on our receipt of distributions or other payments from our subsidiaries and joint ventures. • Restrictive covenants in our debt instruments may adversely affect our business. • 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. • We are exposed to fluctuations in currency exchange rates, which may adversely affect our operating results and net income. • Significant or prolonged periods of higher interest rates may have an adverse effect on our results of operations, financial condition and cash flows. • Inflationary trends in the price of our input costs, such as raw materials, transportation and energy, could adversely affect our business and financial results. • Changes in, or the interpretation of, tax legislation or rates throughout the world could materially impact our results. • Future events may impact our deferred tax asset position and U.S. deferred federal income taxes on undistributed earnings of international affiliates that are considered to be indefinitely reinvested. • Our business and financial results may be adversely affected by various legal and regulatory proceedings. • 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. • We may not be able to consummate future acquisitions or integrate acquisitions into our business, which could result in unanticipated expenses and losses. 10 Albemarle Corporation and Subsidiaries • We may continue to expand our business through acquisitions and we may incur additional indebtedness, including indebtedness related to acquisitions. • If our goodwill, intangible assets or long-lived assets become impaired, we may be required to record a significant charge to earnings.
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. • We will need a significant amount of cash to service our indebtedness and our ability to generate cash depends on many factors beyond our control. • Because a significant portion of our operations is conducted through our subsidiaries and joint ventures, our ability to service our debt may be dependent on our receipt of distributions or other payments from our subsidiaries and joint ventures. • Restrictive covenants in our debt instruments may adversely affect our business. • 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. • Write-offs or impairment of our goodwill, intangible assets or long-lived assets can result in significant charges to earnings. 10 Albemarle Corporation and Subsidiaries • Our business could suffer if we are not successful in executing our strategy and initiatives in connection with our comprehensive review of our cost and operating structure. • We are exposed to fluctuations in currency exchange rates, which may adversely affect our operating results and net income. • Significant or prolonged periods of higher interest rates may have an adverse effect on our results of operations, financial condition and cash flows. • Inflationary trends in the price of our input costs, such as raw materials, transportation and energy, could adversely affect our business and financial results. • Changes in, or the interpretation of, tax legislation or rates throughout the world could materially impact our results. • Future events may impact our deferred tax asset position and U.S. deferred federal income taxes on undistributed earnings of international affiliates that are considered to be indefinitely reinvested. • Our business and financial results may be adversely affected by various legal and regulatory proceedings. • 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. • We may not be able to consummate future acquisitions or integrate acquisitions into our business, which could result in unanticipated expenses and losses. • We may continue to expand our business through acquisitions and we may incur additional indebtedness, including indebtedness related to acquisitions.
These competitors may also be able to maintain significantly greater operating and financial flexibility. As a result, these competitors may be better able to withstand changes in conditions within our industry. Competitors’ pricing decisions could compel us to decrease our prices, which could negatively affect our margins and profitability.
These competitors may also be able to maintain significantly greater operating and financial flexibility. As a result, these competitors may be better able to withstand changes in 13 Albemarle Corporation and Subsidiaries conditions within our industry. Competitors’ pricing decisions could compel us to decrease our prices, which could negatively affect our margins and profitability.
There are numerous uncertainties inherent in estimating quantities and qualities of lithium and costs to extract recoverable reserves, including many factors beyond our control, that could cause results to differ materially from expected financial and operating results or result in future impairment charges.
There are numerous uncertainties inherent in estimating quantities and qualities of lithium and costs to extract recoverable 19 Albemarle Corporation and Subsidiaries reserves, including many factors beyond our control, that could cause results to differ materially from expected financial and operating results or result in future impairment charges.
We generally rely on patent, trade secret, trademark and copyright laws of the U.S. and certain other countries in which our products are produced or sold, as well as licenses and nondisclosure and confidentiality agreements, to protect our intellectual property rights.
We generally rely on patent, trade secret, trademark and copyright laws of the U.S. and certain other countries in which our 18 Albemarle Corporation and Subsidiaries products are produced or sold, as well as licenses and nondisclosure and confidentiality agreements, to protect our intellectual property rights.
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.
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.
Our ability to generate sufficient cash flow from operations or use existing cash balances to make scheduled payments on our debt depends on a range of economic, competitive and business factors, many of which are outside our control. Our business may not generate sufficient cash flow from operations to service our debt obligations.
Our ability to generate sufficient cash flow from operations or use existing cash balances to make scheduled payments on our debt depends on our future performance, which is subject to a range of economic, competitive and business factors, many of which are outside our control. Our business may not generate sufficient cash flow from operations to service our debt obligations.
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.
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. 28 Albemarle Corporation and Subsidiaries Our insurance may not fully cover all potential exposures.
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.
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. We could be adversely affected by violations of the U.S.
As we ship a significant portion of our lithium from Australia into China for further processing, tensions or a breakdown in relations between the countries could have a material impact on our operations.
However, as we ship a significant portion of our lithium from Australia into China for further processing, any tensions or a regression in relations between the countries could have a material impact on our operations.
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.
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.
Our ability to implement this component of our growth strategy will be limited by our ability to identify appropriate acquisition or joint venture candidates and our financial resources, including available cash and borrowing capacity.
Our ability to implement this component of our growth strategy will be limited by our ability to identify appropriate acquisition or joint venture candidates and our financial 25 Albemarle Corporation and Subsidiaries resources, including available cash and borrowing capacity.
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.
See “Financial Condition and Liquidity—Long-Term Debt” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for further descriptions of our 2022 Credit Agreement covenants. 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.
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.
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; 11 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; • delays in obtaining or renewing, or the inability to obtain, maintain or renew, or the renegotiation, cancellation, revocation or forced modification of existing contracts, leases, licenses, permits or other agreements and/or approvals; • 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; • 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 regulations, 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; • changes in the strength of our relationships with local communities and indigenous populations in the areas in which we operate may impact our community support; • 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.
Any failure, or perceived failure, to meet evolving stakeholder expectations, additional regulations and industry standards or achieve our ESG goals, commitments, and targets could have an adverse effect on our business, results of operations, financial condition, or stock price. 27 Albemarle Corporation and Subsidiaries Item 1B. Unresolved Staff Comments. NONE
Any failure, or perceived failure, to meet evolving stakeholder expectations, additional regulations and industry standards or achieve our sustainability goals, commitments, and targets could have an adverse effect on our business, results of operations, financial condition, or stock price. Item 1B. Unresolved Staff Comments. NONE
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.
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.
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.
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, including under our 2022 Credit Agreement and our commercial paper program, limits our access to the capital markets and has an adverse effect on the market price of our securities. 22 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.
We have historically expanded our business primarily through acquisitions. A part of our business strategy is to continue to grow through acquisitions that complement our existing technologies and accelerate our growth. Our credit facilities have limited financial maintenance covenants.
We may continue to expand our business through acquisitions and we may incur additional indebtedness, including indebtedness related to acquisitions. We have historically expanded our business primarily through acquisitions. A part of our business strategy is to continue to grow through acquisitions that complement our existing technologies and accelerate our growth. Our credit facilities have limited financial maintenance covenants.
We may not be able to effectively mitigate against such fluctuations; although some of our long-term agreements include higher pricing, we are also party to index-referenced and variable-priced contracts. In 2023, lithium prices significantly decreased by approximately 75% to 85% from their high in January 2023 to the end of the year, which adversely impacted our financial results.
We may not be able to effectively mitigate against such fluctuations; although some of our long-term agreements include higher pricing, we are also party to index-referenced and variable-priced contracts. Lithium prices significantly decreased by approximately 85% to 95% from their high in January 2023 and remained at that lower level throughout 2024, which adversely impacted our financial results.
Recent changes in the U.S. include the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”), enacted August 16, 2022, which, among other items, imposes a 15% alternative minimum tax on corporations with three-year average annual adjusted financial statement income exceeding $1 billion and introduces or extends a number of tax credits to promote clean energy development.
For example, the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”), enacted August 16, 2022, among other items, imposed a 15% alternative minimum tax on corporations with three-year average annual adjusted financial statement income exceeding $1 billion and introduces or extends a number of tax credits to promote clean energy development.
The TSCA requires chemicals to be assessed against a risk-based safety standard and calling for the elimination of unreasonable risks identified during risk evaluation.
Toxic Substances Control Act (TSCA) requires chemicals to be assessed against a risk-based safety standard and calls for the elimination of unreasonable risks identified during risk evaluation.
For our existing operations, we utilize geological and metallurgical assumptions, financial projections and price estimates. These estimates are periodically updated to reflect changes in our operations, including modifications to our proven and probable reserves and mineralized material, revisions to environmental obligations, changes in legislation and/or social, political or economic environment, and other significant events associated with natural resource extraction operations.
These estimates are periodically updated to reflect changes in our operations, including modifications to our proven and probable reserves and mineralized material, revisions to environmental obligations, changes in legislation and/or social, political or economic environment, and other significant events associated with natural resource extraction operations.
The results of elections in the United States (including the November 2024 presidential election) or other countries in which our customers are located may result in consequent changes to these regulatory regimes that could cause a decline within these industries, leading to a diminished demand for our products.
The results of elections in the United States or other countries in which our customers are located and changes in governing administrations and legislative bodies may result in consequent changes to these regulatory regimes that could cause a decline within these industries, leading to a diminished demand for our products.
Failure to meet environmental, social and governance (“ESG”) expectations or standards or achieve our ESG goals could adversely affect our business, results of operations, financial condition, or stock price.
Failure to meet sustainability expectations or standards or achieve our sustainability goals could adversely affect our business, results of operations, financial condition, or stock price.
We may be required to record a significant charge in our financial statements during the period in which any impairment of our goodwill, intangible assets or long-lived assets is determined, negatively impacting our results of operations and financial condition.
As we continue our review of our cost and operating structure, we may be required to record additional charges in our financial statements during the period in which any impairment of our goodwill, intangible assets or long-lived assets is determined, negatively impacting our results of operations and financial condition.
Any such additional indebtedness and the related debt service obligations (whether or not arising from acquisitions) could have important consequences and risks for us, including: • reducing flexibility in planning for, or reacting to, changes in our businesses, the competitive environment and the industries in which we operate, and to technological and other changes; • lowering credit ratings; • reducing access to capital and increasing borrowing costs generally or for any additional indebtedness to finance future operating and capital expenses and for general corporate purposes; • to the extent that our debt is subject to floating interest rates, increasing our vulnerability to fluctuations in market interest rates; • reducing funds available for operations, capital expenditures, share repurchases, dividends and other activities; and • creating competitive disadvantages relative to other companies with lower debt levels.
Any such additional indebtedness and the related debt service obligations (whether or not arising from acquisitions) could have important consequences and risks for us, including: • reducing flexibility in planning for, or reacting to, changes in our businesses, the competitive environment and the industries in which we operate, and to technological and other changes; • lowering credit ratings; • reducing access to capital and increasing borrowing costs generally or for any additional indebtedness to finance future operating and capital expenses and for general corporate purposes; • to the extent that our debt is subject to floating interest rates, increasing our vulnerability to fluctuations in market interest rates; • reducing funds available for operations, capital expenditures, share repurchases, dividends and other activities; and • creating competitive disadvantages relative to other companies with lower debt level. 26 Albemarle Corporation and Subsidiaries General Risk Factors Adverse conditions in the economy, and volatility and disruption of financial markets can negatively impact our customers, suppliers and other business partners and therefore have a material adverse effect on our business and results of operations.
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.
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 operate in a way that optimizes extraction of raw materials from the reserves we have and acquire additional lithium reserves that are economically viable to replace the reserves we will extract.
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.
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, 2024, approximately 39% 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.
This process involves significant management judgment about assumptions that are subject to change from period to period based on changes in tax laws or variances between future projected operating performance and actual results.
We evaluate our ability to utilize deferred tax assets and our need for valuation allowances based on available evidence. This process involves significant management judgment about assumptions that are subject to change from period to period based on changes in tax laws or variances between future projected operating performance and actual results.
In connection with the sale of certain properties and businesses, we have agreed to indemnify the purchasers of such properties for certain types of matters, such as certain breaches of representations and warranties, taxes and certain environmental matters.
We may be subject to indemnity claims and liable for other payments relating to properties or businesses we have divested. In connection with the sale of certain properties and businesses, we have agreed to indemnify the purchasers of such properties for certain types of matters, such as certain breaches of representations and warranties, taxes and certain environmental matters.
For example, most of our employees in Europe are represented by works councils that must approve any changes in conditions of employment, including salaries and benefits and staff changes, and may impede efforts to restructure our workforce.
Such employment rights require us to work collaboratively with the legal representatives of those employees to effect any changes to labor arrangements. For example, most of our employees in Europe are represented by works councils that must approve any changes in conditions of employment, including salaries and benefits and staff changes, and may impede efforts to restructure our workforce.
In May 2013, we entered into agreements to initiate a commercial paper program under which we may issue unsecured commercial paper notes from time-to-time in a maximum aggregate principal amount outstanding at any time of up to $1.5 billion (up from $750 million prior to the May 2023 increase).
In May 2013, we entered into agreements to initiate a commercial paper program under which we may issue unsecured commercial paper notes from time-to-time in a maximum aggregate principal amount outstanding at any time of up to $1.5 billion (up from $750 million prior to the May 2023 increase). 23 Albemarle Corporation and Subsidiaries In a rising interest rate environment, debt financing will become more expensive and may have higher transactional and servicing costs.
Our customers may experience deterioration of their businesses, cash flow shortages and difficulty obtaining financing, leading them to delay or cancel plans to purchase products, and they may not be able to fulfill their obligations in a timely fashion. Further, suppliers and other business partners may experience similar conditions, which could impact their ability to fulfill their obligations to us.
Our customers may experience deterioration of their businesses, cash flow shortages and difficulty obtaining financing, leading them to delay or cancel plans to purchase products, and they may not be able to fulfill their obligations in a timely fashion or may seek to renegotiate current arrangements to suit their circumstances.
If we are unable to do so, we may not be able to effectively compete in some of our markets. We will need a significant amount of cash to service our indebtedness and our ability to generate cash depends on many factors beyond our control.
If we are unable to do so, we may not be able to effectively compete in some of our markets. Our indebtedness could adversely affect our financial health and our ability to execute our business strategy, and we will need a significant amount of cash to service our indebtedness.
We regularly assess the likelihood of adverse outcomes resulting from these examinations or changes in laws, rules, regulations or interpretations to determine the adequacy of our provision for taxes. It is possible the outcomes from these examinations will have a material adverse effect on our financial condition and operating results.
We regularly assess the likelihood of adverse outcomes resulting from these examinations or changes in laws, rules, regulations or interpretations to determine the adequacy of our provision for taxes.
In addition, the U.S. and other regions in which we operate are experiencing an acute workforce shortage for skilled workers, which in turn has created a hyper-competitive wage environment that may impact our ability to attract and retain employees.
In addition, the U.S. and other regions in which we operate are experiencing an acute workforce shortage for skilled workers, which in turn has created a hyper-competitive wage environment that may impact our ability to attract and retain employees. 20 Albemarle Corporation and Subsidiaries 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.
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.
The current U.S. presidential administration has indicated that it may impose additional tariffs on China and other countries. 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 improved relations and resolved trade disputes.
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.
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.
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.
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.
We manufacture a broad range of brominated fire safety solution products, which are used in a variety of applications to protect people, property and the environment from injury and damage caused by fire.
For example, there has been scrutiny of certain brominated fire safety solutions by regulatory authorities, legislative bodies and environmental interest groups in various countries. We manufacture a broad range of brominated fire safety solution products, which are used in a variety of applications to protect people, property and the environment from injury and damage caused by fire.
For example, over the past several years the U.S. and China have applied tariffs to certain of each other’s exports, which have resulted in shifting trade flows and restrictions on certain sales of goods into China.
For example, over the past several years the U.S. and China have applied tariffs to certain of each other’s exports, including tariffs on Chinese electric vehicles and lithium-ion batteries announced by the U.S. presidential administration in 2024, which have resulted in, and may continue to cause, shifting trade flows and restrictions on certain sales of goods into China and domestic demand for products manufactured in China.
If we fail to identify and develop or recruit successors, we are at risk of being harmed by the departures of these key employees. Effective succession planning is also important to our long-term success. Failure to ensure effective transfer of knowledge and smooth transitions involving key employees could hinder our strategic planning and execution.
Effective succession planning is also important to our long-term success. Failure to ensure effective transfer of knowledge and smooth transitions involving key employees could hinder our strategic planning and execution.
If our goodwill, intangible assets or long-lived assets become impaired, we may be required to record a significant charge to earnings. Under U.S. Generally Accepted Accounting Principles (“GAAP”), we review our intangible assets and long-lived assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
Generally Accepted Accounting Principles (“GAAP”), we review our intangible assets and long-lived assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Goodwill is tested for impairment on October 31 of each year, or more frequently if required.
We have assessed this framework and determined, based upon available guidance, that these changes could have a material impact to our results of operations, but it is dependent on our mix of earnings beginning in 2024.
Other major jurisdictions are actively considering and implementing changes to their tax laws to adopt certain parts of the OECD’s proposals. We have assessed this framework and determined, based upon available guidance, that these changes could have a material impact to our results of operations, but it is dependent on our ongoing mix of earnings.
Moreover, from time to time, we may enter into negotiations for a proposed acquisition, but be unable or unwilling to consummate the acquisition under consideration. This could cause significant diversion of management’s attention and out-of-pocket expenses. We may continue to expand our business through acquisitions and we may incur additional indebtedness, including indebtedness related to acquisitions.
Any such integration failure could disrupt our business and have a material adverse effect on our consolidated financial condition and results of operations. Moreover, from time to time, we may enter into negotiations for a proposed acquisition, but be unable or unwilling to consummate the acquisition under consideration. This could cause significant diversion of management’s attention and out-of-pocket expenses.
Furthermore, environmental laws are subject to change and have become increasingly stringent in recent years. We expect this trend to continue and to require materially increased capital expenditures and operating and compliance costs. We may be subject to indemnity claims and liable for other payments relating to properties or businesses we have divested.
Furthermore, environmental laws are subject to change and have become increasingly stringent in recent years. We expect this trend to continue and to require materially increased capital expenditures and operating and compliance costs. Certain of our operations could be adversely affected by local communities and/or other stakeholders.
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.
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 decabromodiphenyl ethane, both of which we 15 Albemarle Corporation and Subsidiaries manufacture.
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.
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.
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.
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 and Australian Dollar. Exchange rates between these currencies and the U.S.
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.
Also, differences in views among joint venture participants may result in delayed decisions or failures to agree on major issues. If these differences cause the joint ventures to deviate from their business plans, our results of operations could be adversely affected.
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.
High volatility or further declines in the lithium prices could have a material and adverse effect on the revenues and profitability of our Energy Storage business and on our company generally. In addition, a further decrease in lithium prices may lead to additional inventory valuation charges in the valuation period prior to when the goods are sold.
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.
In 2024, net sales shipped to China represented 36% of our total net sales. Additionally, we own four production facilities located in China, including the lithium conversion plant in Meishan, China, which began production in 2024.
In addition, because of our reliance on our senior management team, the unanticipated departure of any key member of our management team could have an adverse effect on our business. Our future success depends, in part, on our ability to identify and develop or recruit talent to succeed our senior management and other key positions throughout the organization.
In addition, because of our reliance on our senior management team, the unanticipated departure, death or disability of any key member of our management team could have an adverse effect on our business.
Also, it could be difficult to find replacements for business partners without incurring significant delays or cost increases.
Further, suppliers and other business partners may experience similar conditions, which could impact their ability to fulfill their obligations to us. Also, it could be difficult to find replacements for business partners without incurring significant delays or cost increases.
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.
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.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

10 edited+3 added−1 removed8 unchanged
Biggest changeWe follow a zero-trust architecture approach and enforce the use of multi-factor authentication and virtual private network technologies for all external access to provide secure support for our remote workers.
Biggest changeWe engage a third-party global firm to conduct an annual cyber assessment using the CSF, and we engage external vendors to validate our security controls and procedures through periodic penetration tests. 30 Albemarle Corporation and Subsidiaries We follow a zero-trust architecture approach and enforce the use of multi-factor authentication and virtual private network technologies for all external access to provide secure support for our remote workers.
Our team of cybersecurity professionals are responsible for maintaining a global information systems environment that focuses on least privilege, least functionality, and network segmentation throughout the landscape using a layered approach (i.e. a defense-in-depth strategy). This includes a security operations center and cybersecurity engineers who provide 24/7 network monitoring. As further discussed in Item 1A.
Our team of cybersecurity professionals are responsible for maintaining a global information systems environment that focuses on least privilege, least functionality, and network segmentation throughout the landscape using a layered approach (i.e. a defense-in-depth strategy). This includes a security operations center and cybersecurity analysts who provide 24/7 network monitoring. As further discussed in Item 1A.
Information security training is part of our compliance program, and includes mandatory security training for new hires, mandatory yearly security training for all staff, and regular phishing tests to raise awareness and response actions.
Information security training is part of our compliance program, and includes mandatory security training for new hires, mandatory yearly security training for all staff, and periodic phishing tests to raise awareness and response actions.
Our cybersecurity program is overseen by our Chief Information Security Officer (“CISO”), and it is integrated into our overall enterprise risk management framework and thus is factored into our long-term strategy and business continuity plans.
Our cybersecurity program is managed by our Cybersecurity Director and is overseen by our Chief Information Officer (“CIO”), who assumes responsibility for the Chief Information Security Officer (“CISO”) role. The cybersecurity program is integrated into our overall enterprise risk management framework and thus is factored into our long-term strategy and business continuity plans.
All our manufacturing sites have formal business continuity plans that address site-specific priority responses, each determined through business impact analyses that integrate within our overall corporate crisis management response plan and enterprise risk management program. We also conduct frequent drills and exercises of formal cyber response procedures and business continuity plans.
Our manufacturing sites have formal business continuity plans that address site-specific priority responses, each determined through business impact analyses that integrate within our overall corporate crisis management response plan and enterprise risk management program. We conduct an annual incident response tabletop exercise as well as periodic exercises of formalized site business continuity plans.
Lessons learned from the outcomes of these exercises are then assessed and used to inform and improve our formal cyber response procedures and business continuity plans. 28 Albemarle Corporation and Subsidiaries In the event of, or the reasonably likely threat of, a cybersecurity incident, our cyber response procedures outline the tasks and timeline for the escalation of the incident to key members of the organization, including the information technology team, business unit management, and Albemarle executives and other key management.
In the event of, or the reasonably likely threat of, a cybersecurity incident, our cyber response procedures outline the tasks and timeline for the escalation of the incident to key members of the organization, including the information technology team, business unit management, and Albemarle executives and other key management.
Our Chief Information Officer and CISO report on cybersecurity related matters, including the status of ongoing initiatives, incident reporting, compliance with regulatory requirements and industry standards, and emerging threats in global cybersecurity, on a periodic and as needed basis to the Audit and Finance Committee. The Audit and Finance Committee offers guidance on certain matters and approval for material initiatives.
Our CIO reports on cybersecurity related matters, including the status of ongoing initiatives, incident reporting, compliance with regulatory requirements and industry standards, and emerging threats in global cybersecurity, on an as needed basis, but at least annually, to the AFC and executive leadership. The AFC and executive leadership offer guidance on certain matters and approval for material initiatives.
We have also implemented and maintain a documents management program which governs the classification, protection, and use of sensitive company data within the Albemarle environment. All business-requested technologies and third-party service providers must successfully complete a thorough cybersecurity and contract review before being approved for use, after which they become part of our continuous risk monitoring program.
All business-requested technologies and third-party service providers must successfully complete a thorough cybersecurity and contract review before being approved for use, after which they are continuously monitored as part of our supply chain risk management program.
Cybersecurity risks and potential costs are evaluated as a part of business operations, and the respective business impacts are continuously assessed to address evolving threats and vulnerabilities. We engage a third-party global firm to conduct an annual cyber assessment using the CSF, and we engage external vendors to validate our security controls and procedures through periodic penetration tests.
Cybersecurity risks and potential costs are evaluated as a part of business operations, and the respective business impacts are continuously assessed to address evolving threats and vulnerabilities.
Our leadership team receives monthly updates on security operations and governance functions as part of monthly Information Security Council meetings led by our CISO. The Audit and Finance Committee of our Board of Directors oversees information security matters and the Company’s cybersecurity program.
The Audit and Finance Committee (“AFC”) of our Board of Directors oversees information security matters and the Company’s cybersecurity program.
Removed
Our CISO is a Certified Information Systems Security Professional and a Certified Ethical Hacker with more than 25 years of experience as a cybersecurity professional working extensively with critical infrastructure partners to reduce cyber risk within traditional and operation technology networks.
Added
Our Cybersecurity Director brings extensive experience in cybersecurity, including service in U.S. Army Cyber Operations, and has led initiatives in threat management, risk mitigation, and security architecture to strengthen enterprise resilience. His expertise in incident response and security strategy ensures our cybersecurity program remains aligned with industry best practices and evolving cyber threats.
Added
We have also implemented and maintain a documents management program which governs the classification, protection, and use of sensitive company data within the Albemarle environment.
Added
Lessons learned from the outcomes of these exercises are then assessed and used to inform and improve our formal cyber response procedures and business continuity plans.

Item 2. Properties

Properties — owned and leased real estate

139 edited+23 added−28 removed90 unchanged
Biggest changeThe overall decrease in mineral resources was primarily driven by an update of the resource model as a result of the availability of new drilling data as well as mine depletion during 2023. 37 Albemarle Corporation and Subsidiaries The Greenbushes mineral 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) Grade (Li 2 O%) Probable mineral reserves: Reserve Pit 70,400 1.81% Stockpiles 1,400 2.51% • Albemarle’s attributable portion of mineral resources and mineral reserves is 49%. • Mineral reserves are reported exclusive of mineral resources. • Indicated in situ resources have been converted to Probable reserves. • Indicated stockpile resources have been converted to Probable mineral reserves. • Mineral reserves are reported considering a nominal set of assumptions for reporting purposes: ◦ Mineral reserves are based on a mine gate price of $1,383/metric tonne of chemical grade concentrate (6% Li 2 O). ◦ Mineral reserves assume 93% global mining recovery. ◦ Mineral reserves are diluted at approximately 5% at zero grade for all mineral reserve blocks in addition to internal dilution built into the resource model (2.8% with the assumed selective mining unit of 5 meter x 5 meter x 5 meter). ◦ The mass yield for reserves processed through the chemical grade plants is estimated based on mass yield formulas that vary depending on the Li2O% grade of the plant feed.
Biggest changeThe Wodgina mineral reserve estimates with depletion from production from the effective date of the report through December 31, 2024 are summarized in the following table: 42 Albemarle Corporation and Subsidiaries Amount (‘000s metric tonnes) Grade (Li 2 O%) Probable mineral reserves: Open Cut 48,500 1.4% Stockpiles 50 1.5% Tailings Storage Facilities 7,400 1.0% • Amounts represent Albemarle’s attributable portion of mineral resources and mineral reserves of 50%. • Mineral reserves are reported exclusive of mineral resources. • Mineral reserves are reported on a dry basis • Mineral reserves are reported considering a nominal set of assumptions for reporting purposes: • Based on a selling price of $1,300/metric tonne CIF CKJ of chemical grade concentrate (benchmark 6% Li2O) and concentrate transport and selling cost of $6.80/metric tonne. • Assumes a 98% global grade factor. • Assumes variable mining recoveries based on grade, oxidation, thickness, and search distance, sourced from the Company.
A small paved runway airport is also located near San Pedro de Atacama and a large international airport is located in Antofagasta. The La Negra plant (latitude 23°45'20.31"S, longitude 70°18'36.92"W) has direct access roads and located approximately 20 km by paved four lane highway Route 28 southeast of Antofagasta turning north approximately 3 km on Route 5.
A small paved runway airport is also located near San Pedro de Atacama and a large international airport is located in Antofagasta. The La Negra plant (latitude 23°45'20.31"S, longitude 70°18'36.92"W) has direct access roads and is located approximately 20 km by paved four lane highway Route 28 southeast of Antofagasta turning north approximately 3 km on Route 5.
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.
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.
Other planned upgrades to the infrastructure include a new mine service area, a new mine access road, expansions of warehouse and laboratories and the expansion of tailings facilities. Talison ships the chemical-grade lithium concentrate in vessels to our facilities in Meishan and Xinyu, China, and by land transport to our Kemerton, Australia facility, to process into battery-grade lithium hydroxide.
Other planned upgrades to the infrastructure include a new mine service area, a new mine access road, expansions of warehouse and laboratories and the expansion of tailings facilities. Talison ships the chemical-grade lithium concentrate in vessels to our facilities in Meishan, Qinzhou and Xinyu, China, and by land transport to our Kemerton, Australia facility, to process into battery-grade lithium hydroxide.
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 ppm. The cut-off grade of the Albemarle bromine operations has been estimated to be at 1,000 ppm.
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 5,037 ppm. The cut-off grade of the Albemarle bromine operations has been estimated to be at 1,000 ppm.
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 and reserves at the Salar de Atacama facility is discussed in sections 11 and 12, respectively, of the Salar de Atacama technical report summary. 47 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.
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.
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 44 Albemarle Corporation and Subsidiaries annex have been exploited, processed, and sold, or (b) on January 1, 2044, whichever comes first.
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.
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. 48 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.
The La Negra facilities consist of a boron removal plant, a calcium and magnesium removal plant, two lithium carbonate conversion plants, a lithium chloride plant, evaporation-sedimentation ponds, an offsite area where the raw materials are housed and the inputs that are used in the process are prepared, a dry area where the various products are prepared, as well as a fleet of owned and leased equipment.
The La Negra facilities consist of three boron removal plants, three calcium and magnesium removal plants, three lithium carbonate conversion plants, a lithium chloride plant, evaporation-sedimentation ponds, an offsite area where the raw materials are housed and the inputs that are used in the process are prepared, a dry area where the various products are prepared, as well as a fleet of owned and leased equipment.
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.
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, 2024.
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.
The mineral reserve estimate attributable to Albemarle’s 50% interest in its JBC joint venture is approximately 2.0 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 above production amounts reflect that change in ownership percentage beginning on October 18, 2023. (d) The Salar de Atacama operation also produces potash (potassium chloride), bichofite, halite and sylvinite as byproducts. However, the Company does not consider production of these byproducts as material to the economics of the operation.
The above production amounts reflect that change in ownership percentage beginning on October 18, 2023. (d) The Salar de Atacama operation also produces potash (potassium chloride), bischofite, halite and sylvinite as byproducts. However, the Company does not consider production of these byproducts as material to the economics of the operation.
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.
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 2.0 million metric tonnes of bromine from the Dead Sea.
The following table provides a summary of our mineral resources, exclusive of reserves, at December 31, 2023. The below mineral resource amounts are rounded and shown in thousands of metric tonnes. Where applicable, the amounts represent Albemarle’s attributable portion based on ownership percentages noted.
The following table provides a summary of our mineral resources, exclusive of reserves, at December 31, 2024. The below mineral resource amounts are rounded and shown in thousands of metric tonnes. Where applicable, the amounts represent Albemarle’s attributable portion based on ownership percentages noted.
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.
The following table provides a summary of our mineral reserves at December 31, 2024. 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 Salar de Atacama is a salt flat, the largest in Chile, located in the Atacama Desert in northern Chile, which is the driest place on the planet and thus has an extremely high annual rate of evaporation and extremely low annual rainfall.
The Salar de Atacama is a salt flat, the largest in Chile, located in the Atacama Desert in northern Chile, which is the driest non-polar place on the planet and thus has an extremely high annual rate of evaporation and extremely low annual rainfall.
The following assumptions were used in developing that model: ◦ The estimated economic cut-off grade for the Silver Peak project is 57 mg/l lithium, based on the assumptions discussed below.
The following assumptions were used in developing that model: ◦ The estimated economic cut-off grade for the Silver Peak project is 76 mg/l lithium, based on the assumptions discussed below.
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 wellfield are = -206.23*(Li wellfield feed)2 +7.1903*(wellfield Li feed)+0.4609.
The 18% 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 economic extraction. ◦ Recovery factors for the wellfield are = -206.23*(Li wellfield feed) 2 +7.1903*(wellfield Li feed)+0.4609.
This plan was truncated to reflect the QP’s opinion on uncertainty associated with the production plan as a direct conversion of measured and indicated resource to proven and probable reserve is not possible in the same way as a typical hard-rock mining project. • The 2022 reserve model used as the basis for depletion has not been updated.
This plan was truncated to reflect the QP’s opinion on uncertainty associated with the production plan, as a direct conversion of measured and indicated resources to proven and probable reserve is not possible in the same way as a typical hard rock mining project. • The 2024 reserve model used as the basis for depletion has not been updated.
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.
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 $17,000/metric tonne CIF Asia. ◦ Recovery factors for the wellfield are = -206.23*(Li wellfield feed) 2 +7.1903*(wellfield Li feed) + 0.4609.
Over the course of approximately eighteen months, the desert sun evaporates the water causing other salts to precipitate and leaving behind concentrated lithium brine. If weather conditions are not favorable, the evaporation process may be prolonged.
Over the course of approximately 18-24 months, the desert sun evaporates the water causing other salts to precipitate and leaving behind concentrated lithium brine. If weather conditions are not favorable, the evaporation process may be prolonged.
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.
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 2024, the Company’s manufacturing plants operated at approximately 78% 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 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.
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 12, 2025, 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.
Probable mineral reserve – the economically mineable part of an indicated and, in some cases, a measured mineral resource . Cutoff grade - the grade ( i.e. , the concentration of metal or mineral in rock) that determines the destination of the material during mining.
Probable mineral reserve – the economically mineable part of an indicated and, in some cases, a measured mineral resource . Cut-off grade - the grade ( i.e. , the concentration of metal or mineral in rock) that determines the destination of the material during mining.
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.
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 tenements are due for renewal in 2026 and another in 2030.
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.
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.
As such, there are no specific resources owned by JBC, but Albemarle’s joint venture partner, Arab Potash Company (“APC”) has exclusive rights granted by the Hashemite Kingdom of Jordan to withdraw brine from the Dead Sea and process it to extract minerals.
As such, there are no specific resources owned by JBC, but Albemarle’s joint venture partner, Arab Potash Company (“APC”) has exclusive rights granted by the Hashemite 35 Albemarle Corporation and Subsidiaries Kingdom of Jordan to withdraw brine from the Dead Sea and process it to extract minerals.
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.
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.
Our mineral resource and reserve estimates are based on many factors, including the area and volume covered by our mining rights, assumptions regarding our extraction rates based upon an expectation of operating the mines on a long-term basis and the quality of in-place reserves.
Our mineral resource and reserve estimates are based on many factors, including the area and volume 36 Albemarle Corporation and Subsidiaries covered by our mining rights, assumptions regarding our extraction rates based upon an expectation of operating the mines on a long-term basis and the quality of in-place reserves.
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.
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 10, 2025, with an effective date of June 30, 2024, is filed as Exhibit 96.1 to this report.
Mineral reserve - an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person , can be the basis of an economically viable project. Proven mineral reserve - the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource .
Mineral reserve - an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person , can be the basis of an economically viable project. 32 Albemarle Corporation and Subsidiaries Proven mineral reserve - the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource .
It is located in the Clayton Valley, an arid valley historically covered with dry lake beds (playas). The operation borders the small, unincorporated town of Silver Peak, Nevada. Albemarle uses the Silver Peak site for the production of lithium brines, which are used to make lithium carbonate and, to a lesser degree, lithium hydroxide.
It is located in the Clayton Valley, an arid valley historically covered with dry lake beds (playas). The operation borders the small, unincorporated town of Silver Peak, Nevada. Albemarle uses the Silver Peak site for the production of lithium brines, which are used to make lithium carbonate.
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.
Additional information about key assumptions and parameters relating to the lithium mineral resources and reserves at the Wodgina facility is discussed in sections 11 and 12, respectively, of the Wodgina technical report summary. 43 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.
All lithium mining activities, including tailings storage, processing plant operations, open pits and waste rock dumps, are currently carried out within the boundaries of the three mining leases plus two general purpose leases.
All lithium mining activities, including tailings storage, processing plant operations, open pits 38 Albemarle Corporation and Subsidiaries and waste rock dumps, are currently carried out within the boundaries of the three mining leases plus two general purpose leases.
The September 30, 2022 resource has been depleted for actual production and is reported as of December 31, 2023 in the below table. The amounts represent Albemarle’s attributable portion based on a 100% ownership percentage, and are presented as metric tonnes of lithium metal in thousands.
The June 30, 2024 resource has been depleted for actual production and is reported as of December 31, 2024 in the below table. The amounts represent Albemarle’s attributable portion based on a 100% ownership percentage, and are presented as metric tonnes of lithium metal in thousands.
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.
As of December 31, 2024, our 49% ownership interest of the gross asset value of the facilities at the Greenbushes site was approximately $843.8 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.
Amounts represent Albemarle’s attributable portion based on ownership percentages noted above and are shown in thousands of metric tonnes of 31 Albemarle Corporation and Subsidiaries lithium metal and bromine production. Lithium and bromine is extracted as brine or hard rock concentrate at the extraction facilities.
Amounts represent Albemarle’s attributable portion based on ownership percentages noted above and are shown in thousands of metric tonnes of lithium metal and bromine production. Lithium and bromine are extracted as brine or hard rock concentrate at the extraction facilities.
The facilities at Silver Peak consist of extraction wells, evaporation and concentration ponds, a lithium carbonate plant, a lithium anhydrous plant, a lithium hydroxide plant, a new liming plant, wellfield and mill maintenance, a shipping and packaging facility and administrative offices, as well as a fleet of owned and leased equipment.
The facilities at Silver Peak consist of extraction wells, evaporation and concentration ponds, a lithium carbonate plant, an anhydrous lithium hydroxide plant (for processing lithium hydroxide monohydrate), a liming plant, wellfield and mill maintenance, a shipping and packaging facility and administrative offices, as well as a fleet of owned and leased equipment.
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.
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 $17,000/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 60% recovery in 2027.
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 measured resource of bromide ion attributable to Albemarle’s 50% interest in its JBC joint venture is estimated to be approximately 173.93 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 5,037 parts per million (“ppm”).
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.
There is an estimated 666 million tonnes of bromine in the Dead Sea. 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.
The December 31, 2022 resource has been depleted for actual production and adjusted for the new 50% ownership percentage noted above, and is reported as of December 31, 2023 in the below table. Mineral resources represent 50% interest in Wodgina, which is attributable to the Company’s interest in the MARBL joint venture.
The June 30, 2024 resource has been depleted for actual production and adjusted for the new 50% ownership percentage noted above, and is reported as of December 31, 2024 in the below table. Mineral resources reported below represent a 50% interest in Wodgina, which is attributable to the Company’s interest in the MARBL 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 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.
An additional 78% lithium recovery factor is applied to the lithium carbonate plant. ◦ A sustainable fixed brine pumping rate of 20,000 acre feet per year, ramped up from current levels over a period of 7 years. ◦ Operating cost estimates are based on a combination of fixed brine extraction, general and administrative, and plant costs and variable costs associated with raw brine pumping rate or lithium production rate.
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 Silver Peak reserve estimates with depletion from production from the effective date of the report through December 31, 2024 are summarized in the following table: Amount (‘000s metric tonnes) Concentration (mg/L) Proven mineral reserves: In Situ 12 97 In Process 1 101 Probable mineral reserves: In Situ 66 119 Total mineral reserves: In Situ 78 115 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.
Average life of mine operating cost is calculated at approximately $4,155/metric tonne CIF Asia. ◦ Sustaining capital costs are included in the cut-off grade calculation and post the salar yield improvement program installation, average around $98 million per year. • 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 cost is calculated at approximately $5,334/metric tonne CIF Asia. ◦ Sustaining capital costs are included in the cut-off grade calculation and post the salar yield improvement program installation average around $110 million per year. ◦ Royalties are included in the cut-off grade calculation and average approximately $4,172/metric tonne of lithium carbonate produced. • 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 cost is calculated at approximately $4,155/metric tonne CIF Asia. ◦ Sustaining capital costs are included in the cut-off grade calculation and post the salar yield improvement program installation, average around $98 million per year. • 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.
Average life of mine operating cost is calculated at approximately $5,334/metric tonne CIF Asia. ◦ Sustaining capital costs are included in the cut-off grade calculation and post the salar yield improvement program installation, average around $110 million per year. ◦ Royalties are included in the cut-off grade calculation and average approximately $4,172/metric tonne of lithium carbonate produced. • 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.
Measured and indicated resource were deducted proportionate to their contribution to the overall mineral resource. • Resources are reported on an in situ basis. • Resources are reported as lithium metal. • The resources have been calculated from the block model above 740 meters above sea level. • Resources have been categorized subject to the opinion of a QP based on the amount/robustness of informing data for the estimate, consistency of geological/grade distribution, survey information. • Resources have been calculated using drainable porosity estimated from bibliographical values based on the lithology and QP’s experience in similar deposits. • The estimated economic cutoff grade utilized for resource reporting purposes is 50 mg/l lithium, based on the following assumptions: ◦ A technical grade lithium carbonate price of $22,000/metric tonne CIF North Carolina.
Measured and Indicated resources were deducted proportionate to their contribution to the overall mineral resource. • Resources are reported on an in situ basis. • Resources are reported as lithium metal. • The resources have been calculated from the block model above 740 meters above sea level. • Resources have been categorized subject to the opinion of a QP based on the amount/robustness of informing data for the estimate, consistency of geological/grade distribution, survey information. • Resources have been calculated using drainable porosity estimated from bibliographical values based on the lithology and QP’s experience in similar deposits. • The following assumptions were used in developing the 2024 resource model: ◦ The estimated economic cut-off grade utilized for resource reporting purposes is 63 mg/L lithium, based on the assumptions discussed below. ◦ A technical grade lithium carbonate price of $20,000/metric tonne CIF Asia.
This sustaining capital cost was based on estimates of life of mine annual sustaining capital costs for Greenbushes that were included in the 2024 budget. Subsequent to pit optimization, design and scheduling, a detailed estimate of life of mine sustaining capital costs was prepared.
This sustaining capital cost was based on estimates of life of mine annual 40 Albemarle Corporation and Subsidiaries sustaining capital costs for Greenbushes that were included in the 2025 budget. Subsequent to pit optimization, design and scheduling, a detailed estimate of life of mine sustaining capital costs was prepared.
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.
As of December 31, 2024, the gross asset value of our facilities at our Silver Peak site was approximately $191.9 million. A summary of the Silver Peak facility’s lithium mineral resources, exclusive of reserves, and reserves as of December 31, 2024 is shown in the following tables.
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.
As of December 31, 2024, our 50% ownership interest of the gross asset value of the facilities at the Safi, Jordan site was approximately $261.2 million. A summary of the Safi facility’s bromine mineral resources and reserves as of December 31, 2024 is provided below.
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.
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.
A copy of the QP’s most recent technical report summary with respect to the lithium mineral resource and reserve estimates at the Silver Peak facility, dated February 14, 2023, with an effective date of September 30, 2022, is filed as Exhibit 96.4 to this report. The mineral resource economic assumptions remain unchanged from September 30, 2022.
A copy of the QP’s most recent technical report summary with respect to the lithium mineral resource and reserve estimates at the Silver Peak facility, dated February 8, 2025, with an effective date of June 30, 2024, is filed as Exhibit 96.4 to this report. The mineral resource economic assumptions remain unchanged from June 30, 2024.
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.
As of December 31, 2024, our 50% ownership interest of the gross asset value of the facilities at our Wodgina site was approximately $338.3 million. A summary of the Wodgina facility’s lithium mineral resources as of December 31, 2024 is shown in the following table.
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.
Overview 33 Albemarle Corporation and Subsidiaries At December 31, 2024, we had the following mineral extraction sites: Location Business Segment Ownership % Extraction Type Stage Argentina Antofalla Energy Storage 100% Brine Exploration 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 Exploration 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.
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.
The 18% 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 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 60% recovery in 2027.
An additional recovery factor of 80% lithium recovery is applied to the La Negra lithium carbonate plant. ◦ An average annual brine pumping rate of 414 L/s is assumed to meet drawdown constraint consistent with Albemarle’s permit conditions. ◦ 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 80% lithium recovery is applied to the La Negra lithium carbonate plant. ◦ An average annual brine pumping rate of 368 L/s is assumed to meet drawdown constraint consistent with Albemarle’s early warning plan. ◦ Operating cost estimates are based on a combination of fixed brine extraction, general and administrative, and plant costs and variable costs associated with raw brine pumping rate or lithium production rate.
Resources are reported as lithium metal. • Resources have been categorized subject to the opinion of a QP based on the amount/robustness of informing data for the estimate, consistency of geological/grade distribution, survey information. • Resources have been calculated using drainable porosity estimated from measured values in Upper Halite and Volcano-sedimentary units, and bibliographical values based on the lithology and QP’s experience in similar deposits. • The estimated economic cutoff grade utilized for resource reporting purposes is 800 mg/l lithium, based on the following assumptions: ◦ A technical grade lithium carbonate price of $22,000/metric tonne CIF La Negra.
Resources are reported as lithium metal. • Resources have been categorized subject to the opinion of a QP based on the amount/robustness of informing data for the estimate, consistency of geological/grade distribution, survey information. • Resources have been calculated using drainable porosity estimated from measured values in Upper Halite and Volcano-sedimentary units, and bibliographical values based on the lithology and QP’s experience in similar deposits. • The following assumptions were used in developing the 2024 resource model: ◦ The estimated economic cut-off grade utilized for resource reporting purposes is 904 mg/l lithium, based on the following assumptions: ◦ A technical grade lithium carbonate price of $20,000/metric tonne CIF Asia.
(“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.
(“RPM”), 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 June 30, 2024.
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.
The bromide ion concentration in the brine extracted which feeds the bromine plants, significantly exceeds the selected cut-off grade. The Safi measured mineral resources of 173.93 million metric tonnes of bromide ion at December 31, 2024 decreased by 1% from 175.69 million metric tonnes at December 31, 2023.
From 2017 through 2019, two drilling campaigns were carried out in order to obtain geological and hydrogeological information at the Albemarle mining concession.
From 2017 through 2023, at least five drilling campaigns were carried out in order to obtain geological and hydrogeological information at the Albemarle mining concession.
A copy of the QP’s most recent technical report summary with respect to the lithium mineral resource and reserve estimates at the Salar de Atacama facility, dated February 14, 2023, with an effective date of August 31, 2022, is filed as Exhibit 96.3 to this report. The mineral resource economic assumptions remain unchanged from August 31, 2022.
A copy of the QP’s most recent technical report summary with respect to the lithium mineral resource and reserve estimates at the Salar de Atacama facility, dated February 8, 2025, with an effective date of June 30, 2024, is filed as Exhibit 96.3 to this report. The mineral resource economic assumptions remain unchanged from June 30, 2024.
A copy of the QP’s most recent technical report summary with respect to the lithium mineral resource estimates at the Wodgina facility, dated February 14, 2023, with an effective date of December 31, 2022, is filed as Exhibit 96.2 to this report. The mineral resource economic assumptions remain unchanged from December 31, 2022.
A copy of the QP’s most recent technical report summary with respect to the lithium mineral resource estimates at the Wodgina facility, dated February 10, 2025, with an effective date of June 30, 2024, is filed as Exhibit 96.2 to this report. The mineral resource economic assumptions remain unchanged from June 30, 2024.
Aggregate Annual Production (metric tonnes in thousands) Year Ended December 31, 2023 2022 2021 Lithium (lithium metal) (a) Australia Greenbushes (b) 21 19 13 Wodgina (c) 7 3 — Chile Salar de Atacama (d) 10 10 8 United States Silver Peak, NV 1 1 1 Total lithium metal 39 33 22 Bromine Jordan Safi (e)(f) 58 60 57 United States Magnolia, AR (g) 82 73 71 Total bromine 140 133 128 (a) Lithium production amounts shown as lithium metal.
Aggregate Annual Production (metric tonnes in thousands) Year Ended December 31, 2024 2023 2022 Lithium (lithium metal) (a) Australia Greenbushes (b) 19 21 19 Wodgina (c) 6 7 3 Chile Salar de Atacama (d) 13 10 10 United States Silver Peak, NV 1 1 1 Total lithium metal 39 39 33 Bromine Jordan Safi (e)(f) 56 58 60 United States Magnolia, AR (g) 65 82 73 Total bromine 121 140 133 34 Albemarle Corporation and Subsidiaries (a) Lithium production amounts shown as lithium metal.
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.
Amount (‘000s metric tonnes) Proven mineral reserves 2,468 Probable mineral reserves 467 Total mineral reserves 2,935 • Reserves are reported as bromine, on an in situ basis. • The estimated economic cut-off grade utilized for reserve reporting purposes is 1,000 mg/L bromine, with a bromine price ranging from $1,660 to $3,020 per metric tonne and operating costs ranging from $756 to $1,094 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 6,600 mg/L.
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 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.
After that point, evaporation pond recovery remains relatively constant at 65%, An additional recovery factor of 80% lithium recovery is applied to the La Negra lithium carbonate plant. ◦ A fixed average annual brine pumping rate of 414 L/s is assumed to meet consistent with Albemarle’s permit conditions. ◦ 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.
After that point, evaporation pond recovery remains relatively constant at 60%, An additional recovery factor of 80% lithium recovery is applied to the La Negra lithium carbonate plant. ◦ An average annual brine pumping rate of 368 L/s is assumed to meet drawdown constraint with activation of Albemarle’s early warning plan. ◦ Operating cost estimates are based on a combination of fixed brine extraction, general and administrative, and plant costs and variable costs associated with raw brine pumping rate or lithium production rate.
Location 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.
Location Principal Use Owned/Leased Energy Storage Chengdu, China Production of technical and battery-grade lithium hydroxide Owned Greenbushes, Australia (a) Production of lithium spodumene minerals and lithium concentrate Owned (c) Kemerton, Australia Production of 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 Owned Meishan, China Production of technical and battery-grade lithium hydroxide Owned Qinzhou, China Production of lithium carbonate and technical and battery-grade lithium hydroxide Owned 31 Albemarle Corporation and Subsidiaries Location Principal Use Owned/Leased 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 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 (b) Amsterdam, the Netherlands Production of refinery catalysts, research and product development activities Owned Bayport, TX Production of refinery catalysts, research and product development activities Owned Niihama, Japan Production of refinery catalysts Leased (c) Pasadena, TX Production of variety of chemical products, including aluminum and magnesium alkyls and alkyltes Owned Santa Cruz, Brazil Production of catalysts, research and product development activities Owned (c) (a) See below for further discussion of these significant mineral extraction facilities.
The Greenbushes 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 37,100 1.48% Inferred mineral resources 5,800 1.19% • Albemarle’s attributable portion of mineral resources is 49%. • Mineral resources are reported exclusive of mineral reserves.
The Greenbushes mineral resources, exclusive of reserves, estimates with depletion from production from the effective date of the report through December 31, 2024 are summarized in the following table: Amount (‘000s metric tonnes) Grade (Li 2 O%) Indicated mineral resources 37,500 1.5% Inferred mineral resources 8,200 1.7% • Amounts represent Albemarle’s attributable portion of mineral resources of 49%. • Mineral resources are reported exclusive of mineral reserves.
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.
An additional 78% lithium recovery factor is applied to the lithium carbonate plant. ◦ A sustainable fixed brine pumping rate of 20,000 acre feet per year, ramped up from current levels. ◦ Operating cost estimates are based on a combination of fixed brine extraction, general and administrative, and plant costs and variable costs associated with raw brine pumping rate or lithium production rate.
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.
Revenues are based on a forecast bromine price ranging from $1,661 to $3,020 per metric tonne and the operating cost is approximately $364 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 173.93 million metric tonnes.
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).
These reserves represent the first 24 months of feed to the lithium process plant in the 2024 economic model. • Proven reserves have been estimated as the lithium mass pumped during Years 2024 through mid-2035 of the proposed life of mine plan maintaining 10.5 years of proven reserve. • Probable reserves have been estimated as the lithium mass pumped from mid-2035 until the end of the proposed life of mine plan (2041). • The ratio of in situ proven to probable reserves has remained consistent through depletion since the development of the reserve model in 2024 with approximately 65% of the reserve designated as proven and 35% of the reserve designated as probable. • Reserves are reported as lithium metal on a 100% ownership basis. • This mineral reserve estimate was derived based on a production pumping plan truncated in September 2041 (i.e., approximately 16.75 years).
This plan was truncated to reflect the projected depletion of Albemarle’s authorized lithium production quota. • The 2022 reserve model used as the basis for depletion has not been updated. The following assumptions were used in developing that model: ◦ The estimated economic cut-off grade for the Project is 858 mg/l lithium, based on the assumptions discussed below.
This plan was truncated to reflect the termination date of Albemarle’s authorized brine extraction from the salar. • The 2024 reserve model used as the basis for depletion has not been updated. The following assumptions were used in developing that model: ◦ The estimated economic cut-off grade for the project is 1,073 mg/l lithium, based on the assumptions discussed below.
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 . At the plant process recovery of 90 to 95 percent (bromine from bromide), product bromine is estimated at approximately 118,000 metric tonnes per year.
Revenues are based on a forecast bromine price ranging from $1,661 to $3,020 per metric tonne and the operating cost is approximately $364 per metric tonne . At the plant process recovery of 87 percent (bromine from bromide), product bromine is estimated at approximately 118,000 metric tonnes per year.
APC produces potash from the brine extracted from the Dead Sea. A concentrated bromide-enriched brine extracted from APC’s evaporation ponds is the feed material for the JBC plant. Following the formation of the joint venture, the JBC bromine plant began operations in 2002. Expansion of the facilities to double its bromine production capacity went into operation in 2017.
APC produces potash from the brine extracted from the Dead Sea. A concentrated bromide-enriched brine extracted from APC’s evaporation ponds is the feed material for the JBC plant. Following the formation of the joint venture, the JBC bromine plant began operations in 2002.
In addition, the output from Talison can be used by tolling entities in China to produce both lithium carbonate and lithium hydroxide. 36 Albemarle Corporation and Subsidiaries A summary of the Greenbushes facility’s lithium mineral resources, exclusive of reserves, and reserves as of December 31, 2023 is shown in the following tables. SRK Consulting (U.S.) Inc.
In addition, the output from Talison can be used by tolling entities in China to produce both lithium carbonate and lithium hydroxide. A summary of the Greenbushes facility’s lithium mineral resources, exclusive of reserves, and reserves as of December 31, 2024 is shown in the following tables. RPM Global USA Inc.
This is a 10% premium to the price utilized for reserve reporting purposes.
This is an 18% premium to the price utilized for reserve reporting purposes.
This is a 10% premium to the price utilized for reserve reporting purposes.
This is an 18% premium to the price utilized for reserve reporting purposes.
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.
Bromide ion concentration of concentrated bromide-enriched brine from the APC evaporation pond used to estimate the reserve from the Dead Sea was approximately 8,742 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.

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Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeIn addition, the information set forth under Note 17, “Commitments and Contingencies – Litigation” to the Consolidated Financial Statements of this Annual Report on Form 10-K is incorporated herein by reference.
Biggest changeIn addition, the information set forth under Note 15, “Commitments and Contingencies – Litigation” to the Consolidated Financial Statements of this Annual Report on Form 10-K is incorporated herein by reference.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeHe joined the Albemarle board of directors in 2015 and served as Lead Independent Director from 2018 until April 2020. Prior to joining Albemarle, Mr. Masters served as Operating Partner of Advent International, an international private equity group.
Biggest changeLaBauve, Jr. 58 Vice President, Corporate Controller and Chief Accounting Officer J. Kent Masters has served as Chairman and Chief Executive Officer of Albemarle since April 2020. He joined the Albemarle board of directors in 2015 as part of the Company’s Rockwood Holdings Inc. acquisition and served as lead independent director from 2018 until April 2020. Before joining Albemarle, Mr.
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.
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.
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, 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.
Anderson served as executive vice president, administration and chief human resources officer for Duke Energy, an American electric power holding company, from January 2015 to August 2020. Previously, she served in senior leadership roles at Domtar Corporation, The Pantry, Inc. and with IBM Corporation.
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
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. Donald J. LaBauve, Jr. was appointed Albemarle’s Corporate Controller and Chief Accounting Officer in November 2024. Mr.
Prior to Advent, he served as Chief Executive Officer of Foster Wheeler AG, a global engineering and construction contractor and power equipment supplier, when Foster Wheeler AG was acquired by Amec plc to form Amec Foster Wheeler plc.
Masters served as operating partner of Advent International, an international private equity group. Prior to Advent, he was chief executive officer of Foster Wheeler AG, a global engineering and construction contractor and power equipment supplier, from 2011 to 2014.
Most recently, he served as Vice President and General Manager, Electrical Markets Division, where he was directly responsible for 3M’s electrical and renewable energy solutions. Prior to that, he served as 3M’s Vice President, Advanced Materials Division.
He served as vice president and general manager, Electrical Markets Division, where he was directly responsible for 3M’s electrical and renewable energy solutions. Prior to that, he served as 3M’s vice president, Advanced Materials Division. Mr. Johnson has more than 25 years of diverse leadership experience, with extensive work experience in Singapore, Malaysia, Taiwan, Japan and Germany.
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.
Sheorey joined Albemarle in November 2023 as Executive Vice President and Chief Financial Officer. Prior to joining Albemarle, Mr. Sheorey served for more than 20 years in progressive leadership roles in finance, business and corporate organizations for The Dow Chemical Company (“Dow”), a global materials science company.
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.
Cynthia Lima joined Albemarle in February 2023 as Chief Communications Officer. Prior to joining Albemarle, Ms. Lima founded a communications and public affairs consultancy and held senior positions at domestic and global public relations agencies. Ms. Lima also served at the U.S.
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.
During his 16-year FMC career, he served in additional leadership roles in investor relations and corporate development and was 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. He started his career in a range of leadership roles with the Rohm and Haas Company.
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.
He joined Albemarle in January 2018 as chief strategy officer and was appointed president of the lithium global business (now Energy Storage) in August 2018. In his current role, Mr. Norris is responsible for enterprise sales, commercial excellence, field and digital marketing, as well as product management. Prior to joining Albemarle, 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.
Mummert serves on the board of directors for Talison Spodumene Mine at Greenbushes, Western Australia. Michael J. Simmons joined Albemarle as President, Ketjen global business unit in June 2023. 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.
He is also a former member of the executive board of Linde AG, a global leader in manufacturing and sales of industrial gases. He serves on the board of directors of Vibrantz Technologies, a global technology leader in color solutions, functional coatings and specialty minerals. He is also a member of the Charlotte Executive Leadership Council. Neal R.
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.
He served as vice president of Dow’s Coatings and Performance Monomers business unit, where he was responsible for the group’s strategy, profitability and growth initiatives. Previously, Mr. Sheorey served as Dow’s vice president of investor relations, senior director of corporate development and global finance director for the Chemicals business group.
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Item 4. Mine Safety Disclosures. NONE Executive Officers of the Registrant.
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Item 4. Mine Safety Disclosures. NONE 54 Albemarle Corporation and Subsidiaries Executive Officers of the Registrant. The names, ages and biographies of our executive officers, as of February 12, 2025, are set forth below. The term of office of each officer is until the meeting of the Board of Directors following the next annual shareholders’ meeting in May 2025.
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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.
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Name Age Position J. Kent Masters 64 Chairman and Chief Executive Officer Neal R. Sheorey 48 Executive Vice President, Chief Financial Officer Melissa H. Anderson 60 Executive Vice President, Chief People and Transformation Officer Netha N. Johnson 54 Executive Vice President, Chief Operations Officer Eric W. Norris 58 Executive Vice President, Chief Commercial Officer Stacy G.
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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.
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Grant 37 Senior Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer Cynthia R. Lima 63 Senior Vice President, Chief External Affairs and Communications Officer Mark R. Mummert 57 Senior Vice President, Chief Capital, Resources and Supply Chain Officer Michael J. Simmons 61 President, Ketjen Global Business Unit Donald J.
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Barichivich III 56 Vice President, Corporate Controller, Chief Accounting Officer Kristin M. Coleman 55 Executive Vice President, General Counsel and Corporate Secretary Jacobus G.
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Melissa Anderson joined Albemarle Executive Vice President and Chief People Officer in January of 2021. In November 2024, she assumed responsibility for enterprise transformation. In this role, she is responsible for leading the transition to a fully integrated functional model along with execution of the Human Resources’ strategic plan and key initiatives. Prior to joining Albemarle, Ms.
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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.
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She serves on the board of directors of Vulcan Materials and as a member of the advisory board of the HR Policy Association. Ms. Anderson is a member of the advisory board for the Center for Executive Succession at the University of South Carolina’s Darla Moore School of Business.
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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.
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She also serves on the board of directors for the Society for Human Resource Management (SHRM), previously serving as its chair. Netha N. Johnson joined the company in 2018 as president of Albemarle’s Bromine Specialties business and was appointed Chief Operations Officer in November 2024. Prior to joining Albemarle, Mr. Johnson served in several progressive leadership roles with 3M Company.
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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.
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Preceding his business career, he served as a U.S. Naval Officer. Mr. Johnson is a member of the board of directors of Xcel Energy, where he serves as a member of the Finance Committee and the Operations, Nuclear, Environmental and Safety Committee. 55 Albemarle Corporation and Subsidiaries Eric Norris is Executive Vice President and Chief Commercial Officer for Albemarle.
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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.
Added
Mr. Norris is a member of the board of directors of Communities in Schools of Charlotte-Mecklenburg. Stacy G. Grant joined Albemarle in May of 2023 as vice president and deputy general counsel, global corporate affairs and has more than 10 years of broad legal experience, navigating complex legal and regulatory landscapes.
Removed
Barichivich acted as Vice President - Finance, Bromine Specialties global business unit, and he previously served as Vice President of Finance, Catalysts global business unit from September 2012 until December 2015. Mr.
Added
She led the legal team’s support for mergers and acquisition work, as well as issues regarding supply chain, labor and employment, capital projects and IT. Prior to Albemarle, she served as Honeywell International’s vice president and general counsel – M&A and ventures. In this role, Ms.
Removed
Barichivich was also the Director of Finance for the Albemarle shared service centers and he started his career with Albemarle as the Operations Controller for the Polymer Solutions business. Prior to Albemarle, Mr. Barichivich held a number of positions, including Director of Finance at the Home Depot, CFO Sensors SBE at PerkinElmer, and Manager of FP&A at General Electric. Mr.
Added
Grant was the chief transactional legal advisor across the corporation with a focus on standardizing processes, advising internal stakeholders and transaction execution. In addition to her corporate experience, she held roles within the law firms of Moore & Van Allen PLLC, King & Spalding and Cravath, Swaine & Moore LLP.
Removed
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.
Added
Department of State as a principal media advisor to the secretary of state and as a senate-confirmed presidential appointee at the U.S. Department of Veterans Affairs. Ms. Lima is a founding member and chair of the board of directors for The Heather Abbott Foundation.
Removed
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.
Added
She also serves on the board of directors for the Albemarle Foundation and the board of trustees for the Charlotte Regional Business Alliance. Mark R. Mummert joined Albemarle in 2019 as chief operating officer for the Energy Storage business before being appointed as Senior Vice President, Chief Capital, Resources and Supply Chain Officer in November 2024. Before joining Albemarle, Mr.
Removed
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.
Added
Mummert held progressive leadership roles in supply chain and global operations at FMC Corporation. His industry experience also includes 20 years with Rohm and Haas Company in various manufacturing and engineering roles. Additionally, Mr. Mummert spent time with Dow where he improved S&OP in supply chain and embedded operational excellence principles at manufacturing sites. Mr.
Removed
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.
Added
LaBauve served as the chief financial officer of the lithium global business (now Energy Storage) since November 2019. He previously served as vice president, corporate controller and chief accounting officer from February 2014 to November 2019 after having previously served as vice president, finance - business operations. Since joining Albemarle in 1990, Mr.
Removed
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.
Added
LaBauve has held various staff and leadership positions of increasing responsibility within the finance function. PART II
Removed
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
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.
Removed
In this role, he was responsible for three distinct businesses comprising the Advanced Material division, which provided world-leading, innovative solutions in fluoropolymer chemicals, advanced ceramics and light-weighting materials. Preceding his business career, Mr. Johnson served as a U.S. Naval Officer. Mr. Johnson has served as a member of the board of directors of Xcel Energy, Inc. since March 2020.
Removed
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.
Removed
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.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+1 added−0 removed1 unchanged
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.
Biggest changeIn each quarter of 2023, we declared a dividend of $0.40 per share and, in each quarter of 2022, we declared a dividend of $0.395 per share.
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.
We expect to continue to declare and pay comparable dividends to our 56 Albemarle Corporation and Subsidiaries shareholders in the future, however, dividends are declared solely at 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, 2018 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, 2019 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 117,402,949 shares of common stock held by 2,039 shareholders of record as of February 7, 2024.
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 117,573,461 shares of common stock held by 1,930 shareholders of record as of February 5, 2025.
Added
On each of February 22, 2024 and May 7, 2024, we declared a dividend of $0.40 per share and on each of July 16, 2024 and October 28, 2024, we declared a dividend of $0.405 per share.

Item 7. Management's Discussion & Analysis

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

161 edited+82 added−76 removed130 unchanged
Biggest changeIncome Tax Expense In thousands 2023 2022 $ Change % Change Income Tax Expense $ 430,277 $ 390,588 $ 39,689 10 % Effective income tax rate 174.4 % 16.1 % • 2023 included tax impact of a non-deductible $218.5 million legal accrual recorded for the agreements to resolve a previously disclosed legal matter with the DOJ and SEC, a $96.5 million current year tax reserve related to an uncertain tax position in Chile, and an establishment of a valuation allowance on current year losses i n one of our Chinese entities resulting in an income tax expense impact of $223.0 million • 2022 includes a $91.8 million tax benefit resulting from the release of a valuation allowance in Australia, a $72.6 million benefit resulting from foreign-derived intangible income, partially offset by a $50.6 million current year tax reserve related to an uncertain tax position in Chile • 2022 included a benefit from global intangible low-taxed income associated with a payment made in 2022 to settle a legacy legal matter • Change in geographic mix of earnings Equity in Net Income of Unconsolidated Investments In thousands 2023 2022 $ Change % Change Equity in net income of unconsolidated investments $ 1,854,082 $ 772,275 $ 1,081,807 140 % • Increased earnings from strong pricing and volume increases from the Windfield joint venture • $8.0 million increase attributable to favorable foreign exchange impacts from the Windfield joint venture 60 Albemarle Corporation and Subsidiaries Net Income Attributable to Noncontrolling Interests In thousands 2023 2022 $ Change % Change Net income attributable to noncontrolling interests $ (97,067) $ (125,315) $ 28,248 (23) % ▪ Decrease in consolidated income related to our JBC joint venture primarily due to lower volume Net Income Attributable to Albemarle Corporation In thousands 2023 2022 $ Change % Change Net income attributable to Albemarle Corporation $ 1,573,476 $ 2,689,816 $ (1,116,340) (42) % Percentage of Net Sales 16.4 % 36.7 % Basic earnings per share $ 13.41 $ 22.97 $ (9.56) (42) % Diluted earnings per share $ 13.36 $ 22.84 $ (9.48) (42) % ▪ Higher costs realized in the current period from sales of lithium resulting from the higher priced spodumene used during the lithium conversion process ▪ $604.1 million charge recorded in 2023 to reduce the value of certain spodumene and finished goods to their net realizable value following the decline in lithium market pricing at the end of the year ▪ The establishment of a valuation allowance on current year losses in one of our Chinese entities resulting in an income tax expense impact of $223.0 million ▪ $218.5 million legal accrual recorded for the agreements in principle to resolve a previously disclosed legal matter with the DOJ, SEC and DPP.
Biggest changeIncome Tax Expense In thousands 2024 2023 $ Change % Change Income Tax Expense $ 87,085 $ 430,277 $ (343,192) (80) % Effective income tax rate (4.9) % 174.4 % • Change in geographic mix of earnings, with lower 2024 earnings in various jurisdictions • 2024 included the impact of the valuation allowance for losses in our consolidated Australian entities and certain entities in China • 2024 included the impact of the 15% global minimum tax under Pillar Two • 2023 included tax impact of a non-deductible $218.5 million legal accrual recorded for the agreements to resolve a previously disclosed legal matter with the DOJ and SEC, a $96.5 million tax reserve related to an uncertain tax position in Chile, and an establishment of a valuation allowance on 2023 losses in one of our Chinese entities resulting in an income tax expense impact of $223.0 million 63 Albemarle Corporation and Subsidiaries Equity in Net Income of Unconsolidated Investments In thousands 2024 2023 $ Change % Change Equity in net income of unconsolidated investments $ 715,433 $ 1,854,082 $ (1,138,649) (61) % • Decreased earnings primarily from lower pricing from the Windfield joint venture in Energy Storage • $34.2 million decrease in foreign exchange impacts from our Windfield joint venture Net Income Attributable to Noncontrolling Interests In thousands 2024 2023 $ Change % Change Net income attributable to noncontrolling interests $ (43,972) $ (97,067) $ 53,095 (55) % • Decrease in consolidated income related to our JBC joint venture primarily due to lower pricing Net (Loss) Income Attributable to Albemarle Corporation In thousands 2024 2023 $ Change % Change Net (loss) income attributable to Albemarle Corporation $ (1,179,449) $ 1,573,476 $ (2,752,925) NM Percentage of Net Sales (21.9) % 16.4 % Net (loss) income attributable to Albemarle Corporation common shareholders $ (1,316,096) $ 1,573,476 $ (2,889,572) NM Basic (loss) earnings per share $ (11.20) $ 13.41 $ (24.61) NM Diluted (loss) earnings per share $ (11.20) $ 13.36 $ (24.56) NM • Decrease in 2024 results due to reasons noted above • Net (loss) income attributable to Albemarle Corporation common shareholders in 2024 includes a $136.6 million reduction for mandatory convertible preferred stock dividends Other Comprehensive (Loss) Income, Net of Tax In thousands 2024 2023 $ Change % Change Other comprehensive (loss) income, net of tax $ (213,469) $ 32,254 $ (245,723) NM • Foreign currency translation and other $ (210,534) $ 26,403 $ (236,937) NM • 2024 included unfavorable movements in the Euro of approximately $182 million, the Brazilian Real of approximately $15 million, the Japanese Yen of approximately $11 million, the Taiwanese Dollar of approximately $6 million, the Korean Won of approximately $6 million and a net unfavorable variance in various other currencies of $7 million, partially offset by unfavorable movements in the Chinese Renminbi of approximately $15 million • 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 • Cash flow hedge $ (2,935) $ 5,851 $ (8,786) NM Segment Information Overview.
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.
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, 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.
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.
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; 57 Albemarle Corporation and Subsidiaries • 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.
Tax effects are released from Accumulated Other Comprehensive Income using either the specific identification approach or the portfolio approach based on the nature of the underlying item. Deferred income taxes are provided for the estimated income tax effect of temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities.
Tax effects are released from Accumulated other comprehensive loss using either the specific identification approach or the portfolio approach based on the nature of the underlying item. Deferred income taxes are provided for the estimated income tax effect of temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities.
Once the recognition threshold is met, we recognize a tax benefit measured as the largest amount of the tax benefit that, in our judgment, is greater than 50% likely to be realized. Interest and penalties related to income tax liabilities are included in Income tax expense on the consolidated statements of income.
Once the recognition threshold is met, we recognize a tax benefit measured as the largest amount of the tax benefit that, in our judgment, is greater than 50% likely to be realized. Interest and penalties related to income tax liabilities are included in Income tax expense on the consolidated statements of (loss) income.
The decrease in cash provided by operating activities in 2023 versus 2022 was primarily due lower earnings from the Energy Storage and Specialties segments, partially offset by lower working capital outflows and higher dividends received from unconsolidated investments, primarily from the Windfield joint venture.
The decrease in cash provided by operating activities in 2023 versus 2022 was primarily due to lower earnings from the Energy Storage and Specialties segments, partially offset by lower working capital outflows and higher dividends received from unconsolidated investments, primarily from the Windfield joint venture.
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.
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 enhances the 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 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.
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; 69 Albemarle Corporation and Subsidiaries • 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.
Results of Operations The following data and discussion provides an analysis of certain significant factors affecting our results of operations during the periods included in the accompanying consolidated statements of income.
Results of Operations The following data and discussion provides an analysis of certain significant factors affecting our results of operations during the periods included in the accompanying consolidated statements of (loss) income.
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.
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, 2024, no evidence of impairment was noted from the analysis for our indefinite-lived intangible assets.
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.
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, 2024 measurement date. In selecting the discount rates for the foreign plans, we look at long-term yields on AA-rated corporate bonds when available.
Borrowings under the 2022 Credit Agreement are conditioned upon satisfaction of certain customary conditions precedent, including the absence of defaults. The February 2024 amendment was entered into to modify the financial covenants under the 2022 Credit Agreement to avoid a potential covenant violation over the following 18 months given the current market pricing of lithium.
Borrowings under the 2022 Credit Agreement are conditioned upon satisfaction of certain customary conditions precedent, including the absence of defaults. The October 2024 amendment was entered into to modify the financial covenants under the 2022 Credit Agreement to avoid a potential covenant violation over the following 18 months given the current market pricing of lithium.
As is customary for such long-term debt instruments, each series of notes outstanding has terms that allow us to redeem the notes before their 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 the notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal thereof and interest thereon (exclusive of interest accrued to, but excluding, the date of redemption) discounted to the redemption date on an annual basis using the bond rate (as defined in the indentures governing these notes) plus between 25 and 35 basis points, depending on the series of notes, plus, in each case, accrued and unpaid interest on the principal amount being redeemed to, but excluding, the date of redemption.
As is customary for such long-term debt instruments, each series of notes outstanding has terms that allow us to redeem the notes before their 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 the notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal thereof and interest thereon (exclusive of interest accrued to, but excluding, the date of redemption) discounted to the redemption date on an annual 76 Albemarle Corporation and Subsidiaries basis using the bond rate (as defined in the indentures governing these notes) plus between 25 and 35 basis points, depending on the series of notes, plus, in each case, accrued and unpaid interest on the principal amount being redeemed to, but excluding, the date of redemption.
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.
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 €377.1 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.
The one-time transition tax imposed by the TCJA is based on our total post-1986 earnings and profits that we previously deferred from U.S. income taxes and is payable over an eight-year period, with the final payment made in 2026.
The one-time transition tax imposed by the TCJA is based on our total post-1986 earnings and profits that we previously deferred from U.S. income taxes and is payable over an eight-year period, with the final payment to be made in 2026.
If the carrying amount of the asset group is not recoverable, the fair value of the asset group is measured and if the carrying amount exceeds the fair value, an impairment loss is recognized. See Note 12, “Goodwill and Other Intangibles,” to our consolidated financial statements included in Part II, Item 8 of this report.
If the carrying amount of the asset group is not recoverable, the fair value of the asset group is measured and if the carrying amount exceeds the fair value, an impairment loss is recognized. See Note 10, “Goodwill and Other Intangibles,” 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 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.
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.
The maximum permitted leverage ratios described above are subject to adjustment in accordance with the terms of the 2022 Credit Agreement upon the consummation of an acquisition after June 30, 2025 if the consideration includes cash proceeds from issuance of funded debt in excess of $500 million.
The maximum permitted leverage ratios described above are subject to adjustment in accordance with the terms of the 2022 Credit Agreement upon the consummation of an acquisition after June 30, 2026 if the consideration includes cash proceeds from the issuance of funded debt in excess of $500 million.
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.
At December 31, 2024, 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.
Pension and OPEB service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to the reportable segments, All Other, and Corporate, whereas the remaining components of pension and OPEB benefits cost or credit (“Non-operating pension and OPEB items”) are included in Corporate.
Pension and OPEB service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to the reportable segments and Corporate, whereas the remaining components of pension and OPEB benefits cost or credit (“Non-operating pension and OPEB items”) are included in Corporate.
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.
For 2024, 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 the purpose of measuring our U.S. pension and OPEB obligations at December 31, 2023 and 2022, we used the Pri-2012 Mortality Tables along with the MP-2021 Mortality Improvement Scale, respectively, published by the SOA.
For the purpose of measuring our U.S. pension and OPEB obligations at December 31, 2024 and 2023, we used the Pri-2012 Mortality Tables along with the MP-2021 Mortality Improvement Scale, respectively, published by the SOA.
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Due to the statute of limitations, we are no longer subject to U.S. federal income tax audits by the Internal Revenue Service (“IRS”) for years prior to 2020.
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Due to the statute of limitations, we are no longer subject to U.S. federal income tax audits by the Internal Revenue Service (“IRS”) for years prior to 2021.
Due to the statute of limitations, we also are no longer subject to U.S. state income tax audits prior to 2017. With respect to jurisdictions outside the U.S., several audits are in process.
Due to the statute of limitations, we also are no longer subject to U.S. state income tax audits prior to 2018. With respect to jurisdictions outside the U.S., several audits are in process.
Secular trends favorably impacting demand within the end markets that we serve combined with our diverse product portfolio, broad geographic presence and customer-focused solutions will continue to be key drivers of our future earnings growth.
Secular trends favorably impacting demand within the end markets that we serve combined with our diverse product portfolio, cost discipline, broad geographic presence and customer-focused solutions will continue to be key drivers of our future earnings.
We have audits ongoing for the years 2014 through 2022 related to Belgium, Canada, Chile, China, Germany and South Africa, some of which are for entities that have since been divested. While we believe we have adequately provided for all tax positions, amounts asserted by taxing authorities could be greater than our accrued position.
We have audits ongoing for the years 2014 through 2023 related to Belgium, Canada, Chile, China and Germany, some of which are for entities that have since been divested. While we believe we have adequately provided for all tax positions, amounts asserted by taxing authorities could be greater than our accrued position.
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 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 continuing our cost savings initiative, while still protecting our employees and customers, committing to shareholder returns and maintaining an investment grade rating.
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.
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.
In projecting the rate of compensation increase, we consider past experience in light of changes in inflation rates. At December 31, 2023 and 2022, the assumed weighted-average rate of compensation increase was 3.67% and 3.67%, respectively, for our foreign pension plans.
In projecting the rate of compensation increase, we consider past experience in light of changes in inflation rates. At December 31, 2024 and 2023, the assumed weighted-average rate of compensation increase was 3.65% and 3.67%, respectively, for our foreign pension plans.
Financial Condition and Liquidity Overview The principal uses of cash in our business generally have been capital investments and resource development costs, funding working capital, and service of debt. We also make contributions to our defined benefit pension plans, pay dividends to our shareholders and have the ability to repurchase shares of our common stock.
Financial Condition and Liquidity Overview The principal uses of cash in our business generally have been capital investments and resource development costs, funding working capital, and service of debt. We also make contributions to our defined benefit pension plans, pay dividends to 73 Albemarle Corporation and Subsidiaries our shareholders and have the ability to repurchase shares of our common stock.
Management’s estimates of the effects of compliance with governmental pollution-abatement and safety regulations are subject to (a) the possibility of changes in the applicable statutes and regulations or in judicial or administrative construction of such statutes and regulations and (b) uncertainty as to whether anticipated solutions to pollution problems will be successful, or whether additional expenditures may prove necessary.
Management’s estimates of the effects of compliance with governmental pollution-abatement and safety regulations are subject to (a) the possibility of changes in the applicable statutes and regulations or in judicial or administrative construction of such statutes and regulations and 83 Albemarle Corporation and Subsidiaries (b) uncertainty as to whether anticipated solutions to pollution problems will be successful, or whether additional expenditures may prove necessary.
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.
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.
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.
We believe that as of December 31, 2024 we were, and currently are, in compliance with all of our debt covenants. For additional information about our long-term debt obligations, see Note 12, “Long-Term Debt,” to our consolidated financial statements included in Part II, Item 8 of this report.
The following is a discussion and analysis of our results of operations for the years ended December 31, 2023, 2022 and 2021.
The following is a discussion and analysis of our results of operations for the years ended December 31, 2024, 2023 and 2022.
(b) Gain recorded during the year ended December 31, 2023 resulting from the restructuring of the MARBL joint venture with MRL.
(c) Gain recorded during the year ended December 31, 2023 resulting from the restructuring of the MARBL joint venture with MRL.
During the fourth quarter of 2023, Albemarle paid MRL approximately $380 million in cash, which includes $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.
During the fourth quarter of 2023, Albemarle paid MRL approximately $380 million in cash, which includes 74 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.
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.
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 1.20% as of December 31, 2024. There were 0 borrowings outstanding under the 2022 Credit Agreement as of December 31, 2024.
The following tables present summarized financial information for the Parent Guarantor and the Issuer on a combined basis after elimination of (i) intercompany transactions and balances among the Issuer and the Parent Guarantor and (ii) equity in earnings from and investments in any subsidiary that is a Non-Guarantor.
The following tables present summarized financial information for the Parent Guarantor and the Issuer on a combined basis after elimination of (i) intercompany transactions and balances among the Issuer and the Parent Guarantor and (ii) equity 80 Albemarle Corporation and Subsidiaries in earnings from and investments in any subsidiary that is a Non-Guarantor.
We continue to build upon our existing green solutions portfolio and our ongoing mission to provide innovative, yet commercially viable, clean energy products and services to the marketplace to contribute to our sustainable revenue.
We continue to build upon our existing green solutions portfolio and our ongoing mission to provide innovative, yet commercially viable, clean energy products and services to the marketplace to contribute to our sustainability-based revenue.
(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 non-curent receivables from Non-Guarantors of $2.3 billion at December 31, 2024. (c) Includes current payables to Non-Guarantors of $1.9 billion at December 31, 2024. (d) Includes non-current payables to Non-Guarantors of $6.8 billion at December 31, 2024. The 3.45% Senior Notes are structurally subordinated to the indebtedness and other liabilities of the Non-Guarantors.
Capital expenditures for pollution-abatement and safety projects, including such costs that are included in other projects, were approximately $116.7 million, $75.6 million and $55.4 million during the years ended December 31, 2023, 2022 and 2021, respectively.
Capital expenditures for pollution-abatement and safety projects, including such costs that are included in other projects, were approximately $54.4 million, $116.7 million and $75.6 million during the years ended December 31, 2024, 2023 and 2022, respectively.
See Note 10, “Investments,” for further details. $8.4 million and $132.4 million of expense recorded during the years ended December 31, 2022 and 2021, respectively, as a result of revised estimates of the obligation to construct certain lithium hydroxide conversion assets in Kemerton, Western Australia, due to cost overruns from supply chain, labor and COVID-19 pandemic related issues.
See Note 8, “Investments,” for further details. $8.4 million of expense recorded during the year ended December 31, 2022 as a result of revised estimates of the obligation to construct certain lithium hydroxide conversion assets in Kemerton, Western Australia, due to cost overruns from supply chain, labor and COVID-19 pandemic related issues.
We remain committed to evaluating the merits of any opportunities that may arise for acquisitions or other business development activities that will complement our business footprint. Additional information regarding our products, markets and financial performance is provided at our website, www.albemarle.com . Our website is not a part of this document nor is it incorporated herein by reference.
From time to time, we may evaluate the merits of any opportunities that may arise for acquisitions or other business development activities that will complement our business footprint. Additional information regarding our products, markets and financial performance is provided at our website, www.albemarle.com . Our website is not a part of this document nor is it incorporated herein by reference.
For more information on our acquisitions and application of the acquisition method, see Note 2, “Acquisitions,” to our consolidated financial statements included in Part II, Item 8 of this report. Income Taxes.
For more information on our acquisitions and 68 Albemarle Corporation and Subsidiaries application of the acquisition method, see Note 2, “Acquisitions,” to our consolidated financial statements included in Part II, Item 8 of this report. Income Taxes.
We have experienced, and may continue to experience, volatility and increases in the price of certain raw materials and in transportation and energy costs as a result of global market and supply chain disruptions and the broader inflationary environment.
We have experienced, and may continue to experience, volatility and increases in the price of certain raw materials and in transportation and energy costs as a result of global market and supply chain disruptions and the broader inflationary 79 Albemarle Corporation and Subsidiaries environment.
(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.
(b) Includes noncurrent receivables from Non-Guarantors of $1.6 billion at December 31, 2024. (c) Includes current payables to Non-Guarantors of $1.9 billion at December 31, 2024. (d) Includes non-current payables to Non-Guarantors of $6.0 billion at December 31, 2024. These securities are structurally subordinated to the indebtedness and other liabilities of the Upstream Non-Guarantors.
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.
See Note 15, “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, 2024, 2023 and 2022.
See Note 15, “Pension Plans and Other Postretirement Benefits,” to our consolidated financial statements included in Part II, Item 8 of this report. Income Taxes We use the liability method for determining our income taxes, under which current and deferred tax liabilities and assets are recorded in accordance with enacted tax laws and rates.
See Note 13, “Pension Plans and Other Postretirement Benefits,” to our consolidated financial statements included in Part II, Item 8 of this report. 72 Albemarle Corporation and Subsidiaries Income Taxes We use the liability method for determining our income taxes, under which current and deferred tax liabilities and assets are recorded in accordance with enacted tax laws and rates.
Segment data includes intersegment transfers of raw materials at cost and allocations for certain corporate costs. Our chief operating decision maker uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources.
Segment data includes intersegment transfers of raw materials at cost and allocations for certain corporate costs. 64 Albemarle Corporation and Subsidiaries Our chief operating decision maker (“CODM”) uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources.
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.
Related assets for corresponding offsetting benefits recorded in Other assets totaled $74.8 million and $73.0 million at December 31, 2024 and 2023, 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.
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.
Contributions to our domestic and foreign qualified and nonqualified pension plans, including our supplemental executive retirement plan, are expected to approximate $17 million in 2025. We may choose to make additional pension contributions in excess of this amount.
(i) Included amounts for the year ended December 31, 2023 recorded in: 63 Albemarle Corporation and Subsidiaries • Cost of goods sold - $15.1 million loss recorded to settle an arbitration matter with a regulatory agency in Chile, partially offset by a $4.1 million gain from an updated cost estimate of an environmental reserve at a site not part of our operations. • SG&A - $9.5 million of separation and other severance costs to employees in Corporate and the Ketjen business which are primarily expected to be paid out during 2023, $2.3 million of facility closure expenses related to offices in Germany, $1.9 million of charges primarily for environmental reserves at sites not part of our operations and $1.8 million of various expenses including for certain legal costs and shortfall contributions for a multiemployer plan financial improvement plan. • Other income (expenses), net - $19.3 million gain from PIK dividends of preferred equity in a Grace subsidiary, a $7.3 million gain resulting from insurance proceeds of a prior legal matter and $5.5 million of gains from the sale of investments and the write-off of certain liabilities no longer required, partially offset by $3.6 million of charges for asset retirement obligations at a site not part of our operations and $0.9 million of a loss resulting from the adjustment of indemnification related to previously disposed businesses.
Included amounts for the year ended December 31, 2023 recorded in: • Cost of goods sold - $15.1 million loss recorded to settle an arbitration matter with a regulatory agency in Chile, partially offset by a $4.1 million gain from an updated cost estimate of an environmental reserve at a site not part of our operations. • SG&A - $2.3 million of facility closure expenses related to offices in Germany, $1.9 million of charges primarily for environmental reserves at sites not part of our operations and $1.8 million of various expenses including for certain legal costs and shortfall contributions for a multiemployer plan financial improvement plan. • Other income, net - $19.3 million gain from PIK dividends of preferred equity in a Grace subsidiary, a $7.3 million gain resulting from insurance proceeds of a prior legal matter and $5.5 million of gains from the sale of investments and the write-off of certain 66 Albemarle Corporation and Subsidiaries liabilities no longer required, partially offset by $3.6 million of charges for asset retirement obligations at a site not part of our operations and $0.9 million of a loss resulting from the adjustment of indemnification related to previously disposed businesses.
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.
For the years ended December 31, 2024, 2023 and 2022, we repatriated approximately $32.7 million, $2.9 million and $1.7 million of cash, respectively, as part of these foreign earnings cash repatriation activities.
We expect our global effective tax rate will vary based on the locales in which income is actually earned and remains subject to potential volatility from changing legislation in the United States, such as the Inflation Reduction Act and the recently released Pillar II effective in 2024, and other tax jurisdictions.
We expect our global effective tax rate will vary based on the locales in which income is actually earned and remains subject to potential volatility from changing legislation in the United States, such as the Inflation Reduction Act and Pillar Two which became effective in early 2024, and other tax jurisdictions.
We assume the deductibility of certain costs in our income tax filings, and we estimate the future recovery of deferred tax assets, uncertain tax positions and indefinite investment assertions. Inventory Valuation. Inventories are stated at lower of cost and net realizable value with cost determined primarily on the first-in, first-out basis.
We assume the deductibility of certain costs in our income tax filings, and we estimate the future recovery of deferred tax assets, uncertain tax positions and indefinite investment assertions. Inventory Valuation. Inventories are stated at lower of cost and net realizable value with cost determined using standard cost, which approximates the first-in, first-out basis.
See Note 16, “Other Noncurrent Liabilities,” and Note 21, “Income Taxes,” to our consolidated financial statements included in Part II, Item 8 of this report for further details.
See Note 14, “Other Noncurrent Liabilities,” and Note 20, “Income Taxes,” to our consolidated financial statements included in Part II, Item 8 of this report for further details.
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.
Our environmental and safety operating costs charged to expense were $87.5 million, $73.0 million and $46.3 million during the years ended December 31, 2024, 2023 and 2022, respectively, excluding depreciation of previous capital expenditures, and are expected to be in the same range in the next few years.
However, if the adjusted EBITDA or discount rate estimates for the Refining Solutions reporting unit negatively changed by 10%, the Refining Solutions fair value would be below its carrying value.
However, if the adjusted EBITDA or discount rate estimates for the Refining Solutions reporting unit negatively changed by 10% (absent any other changes), the Refining Solutions fair value would be below its carrying value.
Beginning in the fourth quarter of 2024, the second financial covenant requires that the ratio of the Company’s consolidated EBITDA to consolidated interest charges (as such terms are defined in the 2022 Credit Agreement) be no less than 2.00:1 for fiscal quarters through June 30, 2025, and no less than 3.00:1 for all fiscal quarters thereafter.
Beginning in the fourth quarter of 2024, the amended second financial covenant requires that the ratio of the Company’s consolidated EBITDA to consolidated interest charges (as such terms are defined in the 2022 Credit Agreement) be no less than (i) 1.00:1.0 for fiscal quarters through June 30, 2025, (ii) 2.00:1.0 for the third quarter of 2025, (iii) 2.50:1.0 for the fourth quarter of 2025, and (iv) 3.00:1.0 for all fiscal quarters thereafter.
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.
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; • the ability to apply for and obtain government funding to to support new operations; • 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 and expenses related to our new operating structure and asset optimization activities; • timing of active and proposed restructuring and cost optimization 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; and • the other factors detailed from time to time in the reports we file with the SEC.
For the years 2023 and 2022, the weighted-average expected rate of return on U.S. pension plan assets was 6.88%, and the weighted-average expected rate of return on foreign pension plan assets was 4.86% and 3.85%, respectively. Effective January 1, 2024, the weighted-average expected rate of return on U.S. and foreign pension plan assets is 6.88% and 5.95%, respectively.
For the years 2024 and 2023, the weighted-average expected rate of return on U.S. pension plan assets was 6.88%, and the weighted-average expected rate of return on foreign pension plan assets was 5.95% and 4.86%, respectively. Effective January 1, 2025, the weighted-average expected rate of return on U.S. and foreign pension plan assets is 6.70% and 6.52%, respectively.
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.
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 $115.7 million at December 31, 2024.
We participate in Wodgina through our ownership interest in the Issuer. On October 18, 2023 we amended the joint venture agreements, resulting in a decrease of our ownership interest in the MARBL joint venture and Wodgina to 50%. The Parent Guarantor conducts its U.S.
We participate in Wodgina through our ownership interest in the Issuer. On October 18, 2023 we amended the joint venture agreements, resulting in a decrease of our ownership interest in the MARBL joint venture and Wodgina to 50%. Prior to January 1, 2024, the Parent Guarantor conducted its U.S.
During the course of 2023, lithium index pricing dropped significantly.
During the course of 2023 and 2024, lithium index pricing dropped significantly.
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.
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.
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.
Cash Flow Our cash and cash equivalents were $1.2 billion at December 31, 2024 as compared to $889.9 million at December 31, 2023. Cash provided by operating activities was $702.1 million, $1.3 billion and $1.9 billion during the years ended December 31, 2024, 2023 and 2022, respectively.
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.
As of December 31, 2024, we have committed to approximately $240.2 million of payments to third-party vendors in the normal course of business to secure raw materials for our production processes, with approximately $128.4 million to be paid in 2025.
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.
We made contributions of approximately $17.4 million to our domestic and foreign pension plans (both qualified and nonqualified) during the year ended December 31, 2024. The liability related to uncertain tax positions, including interest and penalties, recorded in Other noncurrent liabilities totaled $259.6 million and $220.6 million at December 31, 2024 and 2023, 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.
In addition, during the years ended December 31, 2024, 2023 and 2022, our consolidated joint venture, JBC, declared dividends of $149.8 million, $149.7 million and $274.5 million, respectively, which resulted in dividends paid to noncontrolling interests of $37.2 million, $105.6 million and $44.2 million ($53.1 million declared in 2022 was paid in the first quarter of 2023), 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.
At December 31, 2024, the weighted-average discount rate for the U.S. and foreign pension plans increased to 5.65% and 4.04%, respectively, from 5.21% and 3.73%, respectively, at December 31, 2023 to reflect market conditions as of the December 31, 2024 measurement date. The discount rate for the OPEB plans at December 31, 2024 and 2023 was 5.67% and 5.21%, respectively.
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.
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. Our reportable business segments consist of: (1) Energy Storage, (2) Specialties and (3) Ketjen.
Specialties: We expect both net sales and profitability to be relatively flat in 2024 as we recover from reduced customer demand in certain markets, including consumer and industrial electronics, and maintain strong demand in other end-markets, such as pharmaceuticals, agriculture and oilfield services.
Specialties: We expect both net sales and profitability to be higher in 2025 year-over-year as we recover from reduced customer demand in certain markets, including consumer and industrial electronics. In addition, we expect to maintain strong demand in other end-markets, such as pharmaceuticals, agriculture and oilfield services.
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.
Costs for remediation have been accrued and payments related to sites are charged against accrued liabilities, which at December 31, 2024 totaled approximately $20.0 million, a decrease of $14.1 million from $34.1 million at December 31, 2023.
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.
We currently have the ability to transfer up to $540 million in assets under these arrangements. At December 31, 2024 and 2023, there were $74.5 million and $14.3 million, respectively, of bonds outstanding under these arrangements. The non-current portion of our long-term debt amounted to $3.1 billion at December 31, 2024, compared to $3.54 billion at December 31, 2023.
Given the current economic conditions, specifically around the market pricing of lithium, and the related impact on the Company’s future earnings, on February 9, 2024 we amended our revolving, unsecured amended and restated credit agreement dated October 28, 2022 (the “2022 Credit Agreement”), which provides for borrowings of up to $1.5 billion and matures on October 28, 2027.
Given current economic conditions, specifically around the market pricing of lithium, and the related impact on the Company’s future earnings, on October 31, 2024, we further amended the 2022 Credit Agreement, which provides for borrowings of up to $1.5 billion and matures on October 28, 2027.
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.
We had cash and cash equivalents totaling $1.2 billion as of December 31, 2024, of which $833.7 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.
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.
In addition, at December 31, 2024, we had the ability to borrow $1.5 billion under our commercial paper program and the 2022 Credit Agreement, and $98.8 million under other existing lines of credit, subject to various financial covenants under the 2022 Credit Agreement.
We could record additional inventory valuation charges in 2024 if lithium prices continue to deteriorate during the projected period of conversion and sale. While we ramp up our new capacity, we will continue to utilize tolling arrangements to meet growing customer demand.
The Meishan, China lithium conversion plant achieved first commercial sales during the second quarter of 2024. We could record inventory valuation charges in 2025 if lithium prices continue to deteriorate during the projected period of conversion and sale. While we ramp up our new capacity, we will continue to utilize tolling arrangements to meet growing customer demand.
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.
Results for the year ended December 31, 2024 include an actuarial gain of $9.8 million ($7.5 million after income taxes), as compared to a gain of $10.2 million ($8.3 million after income taxes) for the year ended December 31, 2023.
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.
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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

16 edited+3 added−4 removed1 unchanged
Biggest changeIn response to greater fluctuations in foreign currency exchange rates in recent periods, we have increased the degree of exposure risk management activities to minimize the potential impact on earnings. We manage our foreign currency exposures by balancing certain assets and liabilities denominated in foreign currencies and through the use, from time to time, of foreign currency forward contracts.
Biggest changeWe manage our foreign currency exposures by balancing certain assets and liabilities denominated in foreign currencies and through the use, from time to time, of foreign currency forward contracts. The principal objective of such contracts is to minimize the financial impact of changes in foreign currency exchange rates.
All 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.
All other gains and losses on foreign currency forward contracts not designated as an effective hedging instrument are recognized in Other income, net, and generally do not have a significant impact on results of operations.
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 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, 2024, 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. 83 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. 85 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, 2023, 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, 2024, without reflecting the effects of underlying anticipated transactions.
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 may enter into interest rate swaps, collars or similar instruments with the objective of reducing interest rate volatility relating to our borrowing costs. 84 Albemarle Corporation and Subsidiaries Our raw materials are subject to price volatility caused by weather, supply and demand conditions, political and economic variables and other unpredictable factors.
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.
These borrowings represented 1% and 15% of total outstanding debt and bore average interest rates of 0.33% and 5.76% at December 31, 2024 and 2023, respectively. A hypothetical 100 basis point increase in the average interest rate applicable to these borrowings would change our annualized interest expense by approximately $0.3 million as of December 31, 2024.
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.
Dollar against foreign currencies that we hedge would result in an increase of approximately $102.9 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 $103.0 million in the fair value of our foreign currency forward contracts.
When those anticipated transactions are realized, actual effects of changing foreign currency exchange rates could have a material impact on our earnings and cash flows in future periods.
When those anticipated transactions are realized, actual effects of changing foreign currency exchange rates could have a material impact on our earnings and cash flows in future periods. We are exposed to changes in interest rates that could impact our results of operations and financial condition.
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.
At December 31, 2024, our financial instruments subject to foreign currency exchange risk primarily consisted of foreign currency forward contracts with an aggregate notional value of $6.9 billion and with a fair value representing a net liability position of $7.0 million.
In the fourth quarter of 2019, we entered into a foreign currency forward contract to hedge the cash flow exposure of non-functional currency purchases during the construction of the Kemerton plant in Australia.
While these contracts are subject to fluctuations in value, such fluctuations are intended to offset the changes in the value of the underlying exposures being hedged. In the fourth quarter of 2019, we entered into a foreign currency forward contract to hedge the cash flow exposure of non-functional currency purchases during the construction of the Kemerton plant in Australia.
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.
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 $27.5 million and $650.2 million outstanding at December 31, 2024 and 2023, respectively.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk. The primary currencies to which we have foreign currency exchange rate exposure are the Chinese Renminbi, Euro, Australian Dollar, Chilean Peso and Japanese Yen.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk. The primary currencies to which we have foreign currency exchange rate exposure are the Chinese Renminbi, Euro and Australian Dollar. In response to greater fluctuations in foreign currency exchange rates in recent periods, we have increased the degree of exposure risk management activities to minimize the potential impact on earnings.
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.
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. In the event a natural hedge is not available, we may employ a forward contract to reduce exposure, generally expiring within one year.
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.
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. We do not utilize financial instruments for trading or other speculative purposes.
The aggregate notional value of foreign currency forward contracts increased in 2022 due to increased balance sheet exposure from higher sales and income in foreign-denominated currencies. Fluctuations in the value of these contracts are intended to offset the changes in the value of the underlying exposures being hedged.
Fluctuations in the value of these contracts are intended to offset the changes in the value of the underlying exposures being hedged.
Removed
In the event a natural hedge is not available, we may employ a forward contract to reduce exposure, generally expiring within one year. While these contracts are subject to fluctuations in value, such fluctuations are intended to offset the changes in the value of the underlying exposures being hedged.
Added
This contract has been designated as an effective hedging instrument. As a result of the actions taken at Kemerton Trains 3 and 4 during 2024, the Company dedesignated the remaining hedged foreign currency forward contracts.
Removed
This contract has been designated as an effective hedging instrument, and beginning the date of designation, gains or losses on the revaluation of this contract to our reporting currency have been and will be recorded in Accumulated other comprehensive loss.
Added
The Company recorded a loss in Other income, net of $26.1 million during the year ended December 31, 2024 from the reclassification of the hedged balance from Accumulated other comprehensive loss.
Removed
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.
Added
The balance of the settled hedged foreign currency forward contracts associated with the construction of Kemerton Trains 1 and 2 assets placed in service will be reclassified to earnings over the life of the related assets.
Removed
In the first quarter of 2021, we repaid the outstanding balance of these senior notes, and as a result, this net investment hedge was discontinued. The balance of foreign exchange revaluation gains and losses associated with this discontinued net investment hedge will remain within Accumulated other comprehensive loss until the hedged net investment is sold or liquidated.

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