Yahoo Finance Albemarle (ALB) Selects South Carolina for $1.3B Lithium Plant
Albemarle Corporation ALB announced that it will set up its lithium mega-flex facility in Chester County, SC. The new hydroxide facility will include an initial investment of $1.3 billion or more, enabling the company to meet the increasing demand for electric vehicles and lithium-ion batteries.
Albemarle's Mega-Flex plant will process various lithium feedstock, that includes recycled batteries, to manufacture roughly 50,000 metric tons of battery-grade lithium hydroxide annually. The capacity can be increased to 100,000 metric tons and support the manufacture of about 2.4 million electric vehicles yearly. The facility also aligns with the Inflation Reduction Act, which promotes the localization of crucial minerals in North America.
The company stated that the new facility is designed to boost the production of lithium resources in the United States, which will contribute to the clean energy revolution and enhance proximity with its customers as the North American supply chain expands. The company also stated that this investment is aligned with its long-term commitment to offering innovative products and solutions that supports a more resilient world.
Through this new facility, the company expects to create more than 300 jobs and more than 1,500 construction jobs with an average annual wage of around $93,000. Albemarle plans to partner with the state, communities and educational institutions to create job opportunities and a talent pipeline for the new facility. The site's development is also expected to attract nearby suppliers and businesses.
Shares of Albemarle have gained 0.9% over the past year against a 5.8% fall recorded by its industry.
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The company, on its fourth quarter call, said that it expects net sales in the band of $11.3-$12.9 billion for 2023. It projects strength in lithium pricing and end-market demand to drive a 55-75% year-over-year rise in net sales for 2023. It expects adjusted EBITDA for the year to be in the range of $4.2-$5.1 billion. Albemarle projects adjusted earnings per share for 2023 in the band of $26.00-$33.00.
The company anticipates capital expenditures of $1.7-$1.9 billion for 2023. Net cash from operations is projected to be $2.1-$2.4 billion for the year.
Albemarle Corporation Price and Consensus
Albemarle Corporation price-consensus-chart | Albemarle Corporation Quote
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are ATI Inc. ATI, Olympic Steel, Inc. ZEUS and Cal-Maine Foods, Inc. CALM. ATI currently carries a Zacks Rank #2 (Buy), while ZEUS and CALM sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI’s shares have gained 35.9% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
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Cal-Maine’s shares have gained 7.9% in the past year. The company has an earnings growth rate of 515.8% for the current year. The Zacks Consensus Estimate for CALM’s current-year earnings has been revised 19% upward in the past 60 days.
CALM topped Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.
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