Adjustments for Non-Cash Items

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

870c7d555ec487b42c7071095823e98a9c17373c538e87818d75fc96de00ee95

5e24f9cb0516ebf789c030ad7cce960b09364fb440bff78b58f21dbbb2d7c5bb

| Metric (in thousands) | 2023          |
|-----------------------|---------------|
| United States         | $930,838  **[0000915913-24-000016_alb-20231231.htm:234]**  |
| Foreign               | $8,686,365  **[0000915913-24-000016_alb-20231231.htm:234]**  |

9920a1f50de8b62f853c9af378ff37a6fc0a2e99648ddd3996ed675eae8cb4cd

Albemarle Corporation is a global leader in transforming essential resources into critical ingredients for mobility, energy, connectivity, and health. The company operates through three main segments: Energy Storage, Specialties, and Ketjen. Albemarle's diverse product portfolio and strategic focus on innovation and sustainability are key drivers of its earnings growth **[0000915913-24-000016_alb-20231231.htm:99]** **[0000915913-24-000158_alb-20240930.htm:38]**. The company sells lithium compounds, specialty chemicals, and refinery catalysts, which are crucial for applications in consumer electronics, electric vehicles, and cleaner fuel production **[0000915913-24-000016_alb-20231231.htm:3]** **[0000915913-24-000016_alb-20231231.htm:229]** **[0000915913-24-000016_alb-20231231.htm:5]** **[0000915913-24-000016_alb-20231231.htm:6]**.

1. **Energy Storage** - Focuses on lithium compounds essential for applications such as lithium batteries used in consumer electronics and electric vehicles, contributing significantly to the company's revenue **[0000915913-24-000016_alb-20231231.htm:3]** **[0000915913-24-000016_alb-20231231.htm:229]**.
2. **Specialties** - Includes products that enhance fire safety, improve fuel efficiency, and reduce emissions, serving markets like electronics and automotive **[0000915913-24-000016_alb-20231231.htm:99]** **[0000915913-24-000158_alb-20240930.htm:38]**.
3. **Ketjen** - Provides refinery catalysts that help produce cleaner fuels and other oil derivatives, with a focus on hydroprocessing and fluidized catalytic cracking catalysts **[0000915913-24-000016_alb-20231231.htm:5]** **[0000915913-24-000016_alb-20231231.htm:6]**.

83b04bea4a8af3ce50435328053a11a444a831d0ff45f540f7405986a675dac2

| Metric (USD Thousands) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Energy Storage         | **1,980,800**  **[0000915913-23-000044_a02-16x2023ex991segmentrec.htm:1]**  | **1,943,700**  **[0000915913-23-000113_a1q23earningsreleaseex991.htm:1]**  | **1,763,100**  **[0000915913-23-000166_alb-20230630.htm:16]**  | **1,697,200**  **[0000915913-23-000178_a3q23earningsreleaseex991.htm:1]**  | N/A | **800,898**  **[0000915913-24-000100_alb-20240331.htm:20]**  | **830,110**  **[0000915913-24-000139_alb-20240630.htm:25]**  | **767,291**  **[0000915913-24-000158_alb-20240930.htm:26]**  |
| Specialties            | **404,600**  **[0000915913-23-000044_a02-16x2023ex991segmentrec.htm:1]**  | **418,800**  **[0000915913-23-000115_alb-20230331.htm:15]**  | **371,300**  **[0000915913-23-000166_alb-20230630.htm:16]**  | **352,700**  **[0000915913-23-000180_alb-20230930.htm:16]**  | N/A | **316,065**  **[0000915913-24-000100_alb-20240331.htm:20]**  | **334,600**  **[0000915913-24-000139_alb-20240630.htm:25]**  | **342,376**  **[0000915913-24-000158_alb-20240930.htm:26]**  |
| Ketjen                 | **235,500**  **[0000915913-23-000044_a02-16x2023ex991segmentrec.htm:1]**  | **217,800**  **[0000915913-23-000115_alb-20230331.htm:15]**  | **235,800**  **[0000915913-23-000166_alb-20230630.htm:16]**  | **260,700**  **[0000915913-23-000180_alb-20230930.htm:16]**  | N/A | **243,773**  **[0000915913-24-000100_alb-20240331.htm:20]**  | **265,675**  **[0000915913-24-000139_alb-20240630.htm:25]**  | **245,025**  **[0000915913-24-000158_alb-20240930.htm:26]**  |
| Total Net Sales        | **2,621,000**  **[0000915913-23-000035_a4q22earningsreleaseex991.htm:1]**  | **2,580,300**  **[0000915913-23-000113_a1q23earningsreleaseex991.htm:1]**  | **2,370,200**  **[0000915913-23-000166_alb-20230630.htm:16]**  | **2,310,600**  **[0000915913-23-000178_a3q23earningsreleaseex991.htm:1]**  | N/A | **1,360,736**  **[0000915913-24-000100_alb-20240331.htm:20]**  | **1,430,385**  **[0000915913-24-000139_alb-20240630.htm:25]**  | **1,354,692**  **[0000915913-24-000158_alb-20240930.htm:26]**  |

bdc0da53ca6a29814008d9a6bccf4c6625915f3a28c39dc49fab08ab19faf105

1. Given the ongoing low lithium prices, do you believe more supply needs to be removed from the market to support price recovery, and what specific measures is Albemarle taking to address this supply-demand imbalance?  **[ALB_3406450_20]** 

2. Can you provide clarity on your asset sale plans, particularly regarding stakes in **Greenbushes** and other non-core assets like **Ketjen**, and how these sales align with your long-term strategic objectives?  **[ALB_3406450_21]** 

3. With the planned reduction of capital expenditures by at least **$800 million or about 50%**, how will this impact Albemarle's long-term growth prospects and ability to remain competitive in a market recovery?  **[ALB_3406450_1]** 

4. The targeted **$300 million to $400 million** in cost and productivity improvements has a broad range; what are the main factors contributing to this variability, and how confident are you in achieving the higher end of this target?  **[ALB_3406450_16]** 

5. Considering potential changes in government policies after the upcoming election, including **tariffs and EV subsidies**, how is Albemarle adjusting its strategy to mitigate risks and capitalize on the global energy transition?  **[ALB_3406450_23]** 

45c2c5beecf6109c181fd7684a9bfb3a975040e6450a87c19e7705b5d1022271

7a1c86e076f70d5f264eb1c6be4ee56dfc3f497d64f343c9ea3847e8e3d1b70b

United States

Foreign

- South Korea

- China

- Japan

Total Revenue

92b05406adebd7c444fe08121ba3e61fc9bf47afb0c7af03f51d771e9b8a54aa

942a16da6929b9f32b1655c171f567994530b37ca6d473f28e157ad933f6b3d1

- Shell Catalysts & Technologies - Competitor in the CFT catalysts market  **[0000915913-24-000016_alb-20231231.htm:6]** .
- Advanced Refining Technologies - Competitor in the CFT catalysts market  **[0000915913-24-000016_alb-20231231.htm:6]** .
- Haldor Topsoe - Competitor in the CFT catalysts market  **[0000915913-24-000016_alb-20231231.htm:6]** .
- W.R. Grace & Co. - Competitor in the FCC catalysts market  **[0000915913-24-000016_alb-20231231.htm:6]** .
- BASF Corporation - Competitor in the FCC catalysts market  **[0000915913-24-000016_alb-20231231.htm:6]** .
- China Petrochemical Corporation (Sinopec) - Competitor in the FCC catalysts market  **[0000915913-24-000016_alb-20231231.htm:6]** .
- Nouryon - Competitor in the PCS market  **[0000915913-24-000016_alb-20231231.htm:6]** .
- Lanxess AG - Competitor in the PCS market and in the Specialties business  **[0000915913-24-000016_alb-20231231.htm:6]** **[0000915913-24-000016_alb-20231231.htm:4]** .
- Arxada - Competitor in the PCS market  **[0000915913-24-000016_alb-20231231.htm:6]** .
- Israel Chemicals Ltd - Competitor in the Specialties business  **[0000915913-24-000016_alb-20231231.htm:4]** .
- Sociedad Quimica y Minera de Chile S.A. - Competitor in the lithium compounds market  **[0000915913-24-000016_alb-20231231.htm:4]** .
- Sichuan Tianqi Lithium - Competitor in the lithium compounds market  **[0000915913-24-000016_alb-20231231.htm:4]** .
- Jiangxi Ganfeng Lithium - Competitor in the lithium compounds market  **[0000915913-24-000016_alb-20231231.htm:4]** .
- Rio Tinto plc - Competitor in the lithium compounds market  **[0000915913-24-000016_alb-20231231.htm:4]** .
- Pilbara Minerals - Competitor in the lithium compounds market  **[0000915913-24-000016_alb-20231231.htm:4]** .
- Arcadium Lithium - Competitor in the lithium compounds market  **[0000915913-24-000016_alb-20231231.htm:4]** .
- Tesla - Competitor in the lithium compounds market  **[0000915913-24-000016_alb-20231231.htm:4]** .

25b8e5ef8fcb4b9d346e8392ec52091da4ef965b229fca0638f6659e578e0a53

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Sales**: Expected near the lower end of the $12 to $15 per kilogram scenario.
  2. **Adjusted EBITDA**: Expected in the middle of the $12 to $15 per kilogram scenario.
  3. **Energy Storage Volume Growth**: More than **20% year-over-year**.
  4. **Operating Cash Conversion**: Approximately **50%**.
  5. **Capital Expenditures**: Reduction by more than **$800 million** in 2025 compared to 2024.
  6. **Cost and Productivity Improvements**: Targeting **$300 million to $400 million**.
  7. **Lithium Market Pricing**: Based on historically observed pricing  **[ALB_3406450_2]** **[ALB_3406450_3]** **[ALB_3406450_6]** **[ALB_3406450_1]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Sales**: **$1.4 billion** in Q2 2024.
  2. **Adjusted EBITDA**: **$386 million** in Q2 2024.
  3. **Adjusted Diluted EPS**: **$0.04 per share**.
  4. **Lithium Pricing Scenario**: Based on a **$15 per kilogram** scenario.
  5. **Liquidity**: **$3.5 billion** available.
  6. **Net Debt to Adjusted EBITDA**: **2.1x**.
  7. **Operating Cash Flow Conversion**: **94%** in Q2, expected **50%** for the year.
  8. **Volume Growth**: Tracking towards **10% to 20%**.
  9. **Capital Expenditures**: **$300 million to $400 million** below 2023 levels  **[ALB_3395891_2]** **[ALB_3395891_4]** **[ALB_3395891_11]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted Diluted EPS**: **$0.26**.
  2. **Net Sales and Adjusted EBITDA**: **$1.4 billion** and **$291 million** respectively.
  3. **Productivity Improvements**: More than **$280 million**.
  4. **Energy Storage Volume Growth**: High end of **10% to 20%**.
  5. **Tax Rate**: Modest benefit at $15 lithium price, typical rate in mid- to high **20%** range at higher prices.
  6. **Cash Flow Conversion**: Below historical averages.
  7. **Capital Allocation**: Focus on high-return growth.
  8. **Lithium Demand Growth**: **2.5x** from 2024 to 2030.
  9. **Spodumene and Carbonate Bidding Events**: Regular events planned.
  10. **Capital Expenditure**: Potential reduction to **$1 billion** by 2025  **[ALB_3382318_3]** **[ALB_3382318_1]** **[ALB_3382318_4]** **[ALB_3382318_6]** **[ALB_3382318_2]** **[ALB_3382318_24]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Energy Storage Volumes**: Increase by **10% to 20%**.
  2. **Specialties Segment**:
     - **Net Sales**: **$1.3 billion to $1.5 billion**.
     - **Adjusted EBITDA**: **$270 million to $330 million**.
  3. **Ketjen Segment**:
     - **Net Sales**: **$1 billion to $1.2 billion**.
     - **Adjusted EBITDA**: **$130 million to $150 million**.
  4. **Corporate Costs**: **$120 million to $150 million**.
  5. **Capital Expenditures**: **$1.6 billion to $1.8 billion**.
  6. **Energy Storage Margins**: Approximately **30%** margin  **[ALB_3373642_4]** **[ALB_3373642_3]** **[ALB_3373642_1]** .

07869144914a40f207503b8d2a675a11abccb44d89ad2d004e86b1ac36860930

| Name                  | Position                                                                 | Start Date          | Short Bio                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------|--------------------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| J. Kent Masters       | Chairman, President, and Chief Executive Officer                         | April 2020          | J. Kent Masters has served as the Chairman, President, and CEO of Albemarle since April 2020. He joined the Board in 2015 and was Lead Independent Director from 2018 to April 2020. Previously, he was CEO of Foster Wheeler AG and an Operating Partner at Advent International  **[0000915913-24-000016_alb-20231231.htm:92]** **[0000915913-24-000084_alb-20240311.htm:9]** **[0000915913-23-000039_alb-20221231.htm:81]** .                                                                 |
| Neal R. Sheorey       | Executive Vice President, Chief Financial Officer                         | November 2023       | Neal R. Sheorey joined Albemarle as EVP and CFO in November 2023. He spent over 20 years at The Dow Chemical Company in various roles, most recently as VP of the Coatings and Performance Monomers business unit  **[0000915913-24-000016_alb-20231231.htm:92]** **[0000915913-24-000084_alb-20240311.htm:29]** .                                                                                                                                    |
| Melissa Anderson      | Senior Vice President, Chief Human Resources Officer                      | January 2021        | Melissa Anderson joined Albemarle as SVP, CHRO in January 2021. Previously, she was EVP, Administration and CHRO at Duke Energy and held roles at Domtar Corporation and IBM  **[0000915913-24-000016_alb-20231231.htm:92]** **[0000915913-23-000039_alb-20221231.htm:82]** .                                                                                                                                                                          |
| John C. Barichivich III| Vice President, Corporate Controller, Chief Accounting Officer            | November 2019       | John C. Barichivich III was appointed VP, Corporate Controller, and CAO in November 2019. He has been with Albemarle since 2007, holding various leadership positions  **[0000915913-24-000016_alb-20231231.htm:93]** **[0000915913-23-000039_alb-20221231.htm:83]** .                                                                                                                                                                                 |
| Kristin M. Coleman    | Executive Vice President, General Counsel, and Corporate Secretary        | November 28, 2022   | Kristin M. Coleman joined Albemarle as EVP, General Counsel, and Corporate Secretary on November 28, 2022. She has nearly 30 years of legal experience, previously serving at US Foods, Sears Holdings, and Brunswick Corporation  **[0000915913-24-000016_alb-20231231.htm:93]** **[0000915913-22-000159_a10-25x20228xkaex991pressr.htm:0]** .                                                                                                                     |
| Jacobus G. Fourie     | Chief Capital Projects Officer                                            | June 2021           | Jacobus G. Fourie has served as Chief Capital Projects Officer since June 2021. He joined Albemarle in January 2019 as VP, Engineering and Project Execution. Previously, he was SVP of Capital Projects at Barrick Gold Corporation  **[0000915913-24-000016_alb-20231231.htm:94]** .                                                                                                                     |
| Netha Johnson         | Chief Operations Officer                                                  | November 1, 2024    | Netha Johnson joined Albemarle in 2018 as President of the Bromine Global Business Unit. He became COO on November 1, 2024. He has over 20 years of leadership experience, including roles at 3M Company  **[0000915913-24-000146_exhibit991-10x07x248xk.htm:0]** **[0000915913-24-000016_alb-20231231.htm:94]** **[0000915913-23-000039_alb-20221231.htm:83]** .                                                                                                                                          |
| Eric Norris           | Chief Commercial Officer                                                  | November 1, 2024    | Eric Norris joined Albemarle in January 2018 as Chief Strategy Officer and became President of the Energy Storage Global Business Unit in August 2018. He transitioned to Chief Commercial Officer on November 1, 2024  **[0000915913-24-000016_alb-20231231.htm:95]** **[0000915913-23-000039_alb-20221231.htm:84]** .                                                                                                                               |
| Michael Simmons       | President, Ketjen Global Business Unit                                    | June 2023           | Michael Simmons joined Albemarle as President of the Ketjen Global Business Unit in June 2023. He has over 30 years of experience, including roles at Vantage Consulting and Shawcor  **[0000915913-24-000016_alb-20231231.htm:95]** **[0000915913-24-000146_exhibit991-10x07x248xk.htm:0]** .                                                                                                                                                                |
| Cynthia Lima          | Senior Vice President, Chief External Affairs and Communications Officer  | November 2023       | Cynthia Lima was appointed SVP, Chief External Affairs and Communications Officer in November 2023. She joined Albemarle in February 2023 as Chief Communications Officer and previously founded C-Suite Communications  **[0000915913-24-000016_alb-20231231.htm:94]** **[0000915913-24-000146_exhibit991-10x07x248xk.htm:0]** .                                                                                                                             |
| Mark Mummert          | Chief Capital, Resources and Integrated Supply Chain Officer              | November 1, 2024    | Mark Mummert serves as Chief Capital, Resources and Integrated Supply Chain Officer, effective November 1, 2024. Previously, he was SVP of Capital Projects  **[0000915913-24-000146_exhibit991-10x07x248xk.htm:0]** .                                                                                                                                                                                            |
| Donald J. LaBauve, Jr.| Chief Accounting Officer                                                  | November 11, 2024   | Donald J. LaBauve, Jr. was appointed Chief Accounting Officer effective November 11, 2024. He has been with Albemarle since 1990, holding various finance roles, including CFO of the Energy Storage business unit  **[0000915913-24-000152_alb-20241028.htm:1]** .                                                                                                                                     |
| Stacy Grant           | General Counsel, Corporate Secretary, and Chief Compliance Officer        | October 7, 2024     | Stacy Grant became General Counsel, Corporate Secretary, and Chief Compliance Officer effective October 7, 2024. She joined Albemarle in 2023 as VP & Deputy General Counsel, Global Corporate Affairs  **[0000915913-24-000146_exhibit991-10x07x248xk.htm:0]** .                                                                                                                                                 |

4db4f67ba7d520e09052da2f48dd9117feeaf64bd7d2fe6706f494b34ee707d9

| Program Details           | Program 1                |
|---------------------------|--------------------------|
| Approval Date             | N/A                      |
| End Date/Duration         | N/A                      |
| Total additional amount   | **15 million shares**  **[0000915913-24-000016_alb-20231231.htm:182]** **[0000915913-23-000039_alb-20221231.htm:120]** **[0000915913-24-000016_alb-20231231.htm:134]**  |
| Remaining authorization   | **7,396,263 shares**  **[0000915913-24-000016_alb-20231231.htm:182]** **[0000915913-23-000039_alb-20221231.htm:120]** **[0000915913-24-000016_alb-20231231.htm:134]**  |
| Details                   | No shares repurchased during 2021-2023  **[0000915913-24-000016_alb-20231231.htm:182]** **[0000915913-23-000039_alb-20221231.htm:120]** **[0000915913-24-000016_alb-20231231.htm:134]**  |

124d0693670e8f9b1d2ca50a6d9e84c979602377abb1e2ff04f57cda2cc93cec

**Annual guidance for FY 2024:**
- **Operating Cash Conversion**: 50%  **[ALB_3406450_2]** **[ALB_3406450_3]** **[ALB_3406450_6]** **[ALB_3406450_1]**  (no change from 50%  **[ALB_3395891_2]** **[ALB_3395891_4]** **[ALB_3395891_11]** )  
- **Energy Storage Volume Growth**: More than 20%  **[ALB_3406450_2]** **[ALB_3406450_3]** **[ALB_3406450_6]** **[ALB_3406450_1]**  (raised from 10%–20%  **[ALB_3395891_2]** **[ALB_3395891_4]** **[ALB_3395891_11]** )  
- **Net Sales**: Expected near the lower end of the $12 to $15 per kilogram scenario  **[ALB_3406450_2]** **[ALB_3406450_3]** **[ALB_3406450_6]** **[ALB_3406450_1]**  (no prior guidance)  
- **Adjusted EBITDA**: Expected in the middle of the $12 to $15 per kilogram scenario  **[ALB_3406450_2]** **[ALB_3406450_3]** **[ALB_3406450_6]** **[ALB_3406450_1]**  (no prior guidance)  
- **Capital Expenditures**: Reduction by more than $800 million in 2025 compared to 2024  **[ALB_3406450_2]** **[ALB_3406450_3]** **[ALB_3406450_6]** **[ALB_3406450_1]**  (no prior guidance)  
- **Cost and Productivity Improvements**: $300 million to $400 million  **[ALB_3406450_2]** **[ALB_3406450_3]** **[ALB_3406450_6]** **[ALB_3406450_1]**  (no prior guidance)  
- **Lithium Market Pricing**: Based on historically observed pricing  **[ALB_3406450_2]** **[ALB_3406450_3]** **[ALB_3406450_6]** **[ALB_3406450_1]**  (no prior guidance)

cd830d91a922bdcc5a29c50a9a580937eb490dbb993b6ec15da1ee9d8c4f4c55

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 1994  **[0000915913-24-000016_alb-20231231.htm:159]**    | Present  | Current auditor   |

0bce589c682151ec29182d0a424c5a8498228e6ccc409f3bfa3860fb9bf5ec9d

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,355 million (-41% YoY)  **[0000915913-24-000158_alb-20240930.htm:26]** **[0000915913-24-000158_alb-20240930.htm:2]** **[0000915913-23-000180_alb-20230930.htm:1]**   
- Energy Storage Segment: $767 million (-55% YoY)  **[0000915913-24-000158_alb-20240930.htm:26]** **[0000915913-23-000180_alb-20230930.htm:41]**   
- Ketjen Segment: $245 million (-6% YoY)  **[0000915913-24-000158_alb-20240930.htm:26]** **[0000915913-23-000180_alb-20230930.htm:41]**   
- Operating Income: -$1.109 billion vs. -$140 million in prior year  **[0000915913-24-000158_alb-20240930.htm:2]** **[0000915913-23-000180_alb-20230930.htm:1]**   
- Net Income: **- $1.069 billion vs. $264 million** in prior year  **[0000915913-24-000158_alb-20240930.htm:2]** **[0000915913-23-000180_alb-20230930.htm:1]**   
- Diluted EPS: -$9.46 vs. $2.57 in prior year  **[0000915913-24-000158_alb-20240930.htm:2]** **[0000915913-23-000180_alb-20230930.htm:1]**   

d5b1402fd46460feea8e4504ef9c75344e7ffaa7ffc356959666994a4aa4819c

9d168d607edd8849a59bed0daf07e616d0eebde1b2edf118f5508262fbf27bc8

| Year | Amount Due (Millions) | Debt Type       | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|---------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | $3.012                   | Current Portion of Long-Term Debt | N/A                   | 0.1% = (3.012 / 3,586.452) * 100 **[0000915913-24-000158_alb-20240930.htm:29]** **[0000915913-24-000158_alb-20240930.htm:3]**                                  |
| 2025     | €377.1 ($411.8)          | 1.125% Notes        | 1.125                | 11.5% = (411.8 / 3,586.452) * 100 **[0000915913-24-000158_alb-20240930.htm:29]** **[0000915913-24-000158_alb-20240930.htm:58]**                                 |
| 2027     | $650.0                   | 4.65% Senior Notes  | 4.65                 | 18.1% = (650.0 / 3,586.452) * 100 **[0000915913-24-000158_alb-20240930.htm:29]** **[0000915913-24-000158_alb-20240930.htm:58]**                                 |
| 2028     | €500.0 ($546.0)          | 1.625% Notes        | 1.625                | 15.2% = (546.0 / 3,586.452) * 100 **[0000915913-24-000158_alb-20240930.htm:29]** **[0000915913-24-000158_alb-20240930.htm:58]**                                 |
| 2029     | $171.6                   | 3.45% Senior Notes  | 3.45                 | 4.8% = (171.6 / 3,586.452) * 100 **[0000915913-24-000158_alb-20240930.htm:29]** **[0000915913-24-000158_alb-20240930.htm:58]**                                 |
| 2032     | $600.0                   | 5.05% Senior Notes  | 5.05                 | 16.7% = (600.0 / 3,586.452) * 100 **[0000915913-24-000158_alb-20240930.htm:29]** **[0000915913-24-000158_alb-20240930.htm:58]**                                 |
| 2044     | $350.0                   | 5.45% Senior Notes  | 5.45                 | 9.8% = (350.0 / 3,586.452) * 100 **[0000915913-24-000158_alb-20240930.htm:29]** **[0000915913-24-000158_alb-20240930.htm:58]**                                 |
| 2052     | $450.0                   | 5.65% Senior Notes  | 5.65                 | 12.6% = (450.0 / 3,586.452) * 100 **[0000915913-24-000158_alb-20240930.htm:29]** **[0000915913-24-000158_alb-20240930.htm:58]**                                 |

a1e5f538f05c06b590d7637415e20d89bb1867bc90e390492b5b1bd4a3b4faa8

- **Albemarle is implementing significant cost reductions, targeting $300 million to $400 million of cost and productivity improvements, including a further reduction of its global workforce by 6% to 7%, to maintain long-term competitiveness and financial flexibility.**  **[ALB_3406450_5]**
- **Despite market challenges, Albemarle delivered volumetric growth in energy storage and specialties, strong operating cash conversion of over 100%, and is maintaining its full-year 2024 outlook considerations.**  **[ALB_3406450_1]**
- **The company remains committed to its long-term strategy in the lithium market, focusing on high-return projects and maintaining flexibility to capitalize on future market upswings while adjusting its execution in response to market conditions.**  **[ALB_3406450_17]**

9bcde7255242fbcedae0692cde34c5994b2b6a1788ecdffbec46e698890b61d8

1. **2025 EBITDA Outlook**  
   **Q:** Can you keep EBITDA flat if prices don't change?  
   **A:** Management is not providing a specific outlook for 2025 yet but noted several factors. Current market pricing is **20%–25% below** the average achieved in 2024, suggesting a pricing headwind. Additionally, an unusual **$100 million** uplift from the Talison JV in Q2 won't repeat in 2025. On the positive side, fixed costs are expected to come down due to **$300–$400 million** in cost and productivity actions, with **40%–50%** run rate savings expected by year-end. Plant ramp-ups, especially in lithium, will continue to improve fixed asset utilization in 2025.  **[ALB_3406450_8]** 

2. **Impact of CapEx Cuts on Volume Growth**  
   **Q:** How will CapEx cuts affect 2025 lithium volume growth?  
   **A:** CapEx reductions won't significantly impact 2025 volumes, as growth is driven by assets already built and ramping up, like the Salar yield improvement project, Meishan in China, and Kemerton in Australia. However, longer-term growth forecasts have been adjusted from a **20%** CAGR through 2027 to approximately **15%** due to CapEx cuts and volume reductions.  **[ALB_3406450_9]** 

3. **CapEx Reductions and Long-Term Growth**  
   **Q:** Are the reduced CapEx levels mainly maintenance capital, and could they go lower?  
   **A:** The reduced CapEx of **$800–$900 million** includes both maintenance capital and high-return projects. Maintenance capital is targeted at **4%–6%** of revenue on a normalized basis, although it may be slightly higher next year due to below-normal pricing levels. The company will continue to assess opportunities, but future CapEx will depend on high-return projects and market conditions.  **[ALB_3406450_11]** 

4. **Cash Conversion Outlook**  
   **Q:** What's the outlook for cash conversion in the coming quarters?  
   **A:** Strong cash conversion in the recent quarter was aided by working capital management, but such levels aren't repeatable. Going forward, Albemarle is focused on cash generation and aims to reach free cash flow breakeven. Factors affecting cash conversion include working capital management, cost and productivity actions, and dividends from the Talison JV. Notably, Talison JV dividends are expected to be **zero** in Q4, which will lower cash conversion.  **[ALB_3406450_11]** **[ALB_3406450_20]** 

5. **Energy Storage Pricing and Mix Impact**  
   **Q:** Did realized energy storage pricing decline due to contract changes?  
   **A:** There were no significant changes in contracts during the quarter. The apparent pricing decline is due to a shift in sales mix, including higher volumes of spot and spodumene sales, which affected average prices. Contracted volumes remain at about **two-thirds** of total sales, with some contracts having floors and ceilings. The mix effect should balance out on a full-year basis.  **[ALB_3406450_13]** 

6. **Lithium Supply Reduction and Price Recovery**  
   **Q:** Does supply need to decrease for lithium prices to recover?  
   **A:** Management believes both supply reduction and demand growth are necessary for price recovery. They expect more supply to exit the market if low prices persist, although it's uncertain how quickly this will happen. Demand remains strong, bolstered by fixed storage volumes exceeding expectations.  **[ALB_3406450_19]** 

7. **Leverage Covenants and Limits Through 2026**  
   **Q:** How will leverage covenant limits evolve through 2026?  
   **A:** The company has shaped covenant waivers based on trailing 12-month EBITDA, considering current and projected EBITDA patterns. Covenant limits rise to **5.75x** in Q2 and Q3 of 2025, aligning with anticipated EBITDA trends. This approach provides a substantial buffer under the covenants.  **[ALB_3406450_12]** 

8. **Cost Savings Range Explanation**  
   **Q:** Why is there a wide range in the $300–$400 million cost savings target?  
   **A:** The range accounts for uncertainties in overhead reductions, operating cost improvements, and productivity actions at plants. The lower end is conservative, while the upper end is more aggressive, providing flexibility as the company works through these initiatives.  **[ALB_3406450_14]** 

9. **Asset Sale Rumors and Clarifications**  
   **Q:** Are you planning to sell stakes in Greenbushes or other assets?  
   **A:** Albemarle is always reviewing its portfolio but is not considering selling its stake in Greenbushes. Non-core assets like Ketjen are being considered for sale. The company clarified that rumors about selling Greenbushes are unfounded.  **[ALB_3406450_17]** 

10. **Future Strategy Amid Price Recovery**  
    **Q:** How will Albemarle's strategy change if lithium prices recover?  
    **A:** The company's strategy remains unchanged, but execution will adapt to market conditions. If prices recover, Albemarle will cautiously adjust its plans, ensuring that price improvements are sustainable before shifting strategy. The focus is on maintaining a cost structure that allows competitiveness through cycles while retaining flexibility to scale up if the market improves.  **[ALB_3406450_15]** 

6edef02e2ec32298442ca62b2aa4e9cd39f2d6fd8e15b171346184a908bac49c

- **Albemarle expects significant volume growth of over 20% for the next several years**, reaching close to **200,000 tons capacity** by 2024, driven by increased production from Chile and Australia and ramping up facilities like Kemerton and Qinzhou. This positions the company to capitalize on strong long-term lithium demand growth.  **[ALB_3373642_23]**
- **Despite current lithium price weakness, EV demand is growing above 30%**, supporting Albemarle's long-term outlook. Inventory buildup affecting lithium prices is concentrated downstream, while upstream inventories remain low, indicating strong demand fundamentals.  **[ALB_3373642_12]**
- **Albemarle benefits from pricing protection through contract floors and a favorable sales mix**, helping the company realize higher average selling prices than market indices and maintain margins even in a lower price environment.  **[ALB_3373642_19]** ,  **[ALB_3373642_14]**

d9cc6d31d328c714823423553e324c4bdb7a290fa0cb9dd2bead6c067875a1ef

1. **EBITDA Outlook Amid Price Pressures**  
   **Q:** Can EBITDA improve if prices recover to $15/kg in H2?  
   **A:** Even if prices remain at July levels of **$12–$15 per kilogram**, we can maintain our forecast. If prices improve, EBITDA could be higher due to factors like volume mix, additional Talison volumes, contracts, and cost savings initiatives. That's the best visibility we have at the moment.  **[ALB_3395891_7]** **[ALB_3395891_14]** 

2. **$1 Billion Charge Breakdown**  
   **Q:** Can you break down the $1 billion charge in Q3 and how much is cash?  
   **A:** Of the roughly **$1 billion charge**, at least **60% is noncash**, representing write-offs of existing balance sheet items. We'll refine this number further in Q3 and provide a better assessment of the cash component then.  **[ALB_3395891_9]** 

3. **CapEx Reduction and Sustaining Capital**  
   **Q:** Is corporate CapEx below $1 billion next year feasible given efforts to lower sustaining capital?  
   **A:** We're challenging our sustaining capital estimates and see an opportunity to reduce CapEx aggressively without unnecessary risks. Many assets are still ramping and new, so we've been conservative before. We're working through this now and will share more in the next couple of quarters.  **[ALB_3395891_18]** **[ALB_3395891_25]** 

4. **Impact of Kemerton Curtailments**  
   **Q:** What do Kemerton capacity curtailments mean for Wodgina production?  
   **A:** The curtailments at Kemerton don't impact Wodgina production. We're taking out conversion capacity but continue to operate both Greenbushes and Wodgina resources; it's not related to Kemerton.  **[ALB_3395891_16]** 

5. **Volume Growth Outlook Amid Reduced CapEx**  
   **Q:** Will you still grow volumes into 2025 with reduced growth CapEx?  
   **A:** Yes, we have a couple of years of growth from assets on the ground and ramping. We'll continue to grow in **2025** and into **2026**, but without further investment, growth will plateau. Adjustments at Kemerton give us more product mix flexibility but limit geographic diversity—a trade-off we're making.  **[ALB_3395891_19]** 

6. **Contract Enforcement and Customer Relations**  
   **Q:** How are customer dynamics and contracts unfolding amid market pricing changes?  
   **A:** We're helping customers remain competitive while respecting our contracts to continue investing on their behalf. All contracts are performing, and we expect that to continue. We're working on sourcing flexibility to aid their supply chains while maintaining contract fundamentals.  **[ALB_3395891_23]** 

7. **Shift to Carbonate-based Batteries**  
   **Q:** Why is there a shift to carbonate-based batteries, and does it affect Kemerton II?  
   **A:** There's a shift toward carbonate due to the preference for LFP technology, especially in China. This affects our product mix; Kemerton produces hydroxide, but we can toll the resource for carbonate if needed, offering more flexibility. This influenced our decision regarding Kemerton II and III.  **[ALB_3395891_21]** 

8. **Improved Cash Conversion and Cash Flow**  
   **Q:** What's driving the improved cash conversion, and how does it affect cash flow this year?  
   **A:** We're now expecting up to **50% cash conversion**, towards the high end of our historical range. This is driven by better-than-expected dividends from equity companies, notably additional offtake at Talison, and positive results from working capital initiatives releasing cash.  **[ALB_3395891_10]** 

9. **China Lithium Market Dynamics**  
   **Q:** What's happening in China regarding lithium capacity shutdowns?  
   **A:** Capacity shutdowns haven't changed materially—some reduction of tens of thousands of tons due to low prices. Non-integrated producers are under pressure, with most operating at a loss. Seasonal brine production is ramping up, substituting decreased petalite production. Rising lithium salt inventories are a concern.  **[ALB_3395891_17]** 

10. **Specialties Business Outlook**  
    **Q:** Is weakness in specialties due to destocking or end-market weakness?  
    **A:** We're seeing slower recovery than expected, particularly in electronics. We had **9% volume growth** but price declines due to lower Chinese bromine spot prices. We see positive signs with recovering electronics and continued strength in oil and gas, pharma, and ag, expecting sequential growth through the rest of the year.  **[ALB_3395891_26]** 

11. **Conditions to Restart Kemerton II**  
    **Q:** What needs to happen to restart Kemerton II, and what's the cost and timeline?  
    **A:** We need to optimize Train 1 before restarting Train 2. Market conditions need to improve. Restarting Kemerton II won't be immediate; there's a timeframe and some cost, including staffing, but it's not dramatic from a capital standpoint.  **[ALB_3395891_22]** 

12. **CapEx Reduction Post-Kemerton Decision**  
    **Q:** How does saving $200–$300 million from Kemerton affect next year's CapEx?  
    **A:** Idling Kemerton II will lower CapEx in **2025** and **2026**. We're focusing on reducing CapEx quickly without unnecessary risk and will share more in upcoming quarters.  **[ALB_3395891_25]** 

13. **DLE Projects Progress**  
    **Q:** What's the progress and requirements for DLE projects in Latin America?  
    **A:** We're advancing two DLE pilot projects—one in Arkansas and another at Salar de Atacama. The key is consistent operation in the field. We're not waiting on government support and are moving projects forward to leverage low-cost resources for growth.  **[ALB_3395891_20]** 

14. **Accounts Receivable Factoring Program**  
    **Q:** How does your factoring process work, and what impact will it have?  
    **A:** We've established an **accounts receivable factoring program**, currently untapped. We'll use it when we need liquidity, and at that point, it will reflect in working capital results. For now, it's an available resource.  **[ALB_3395891_13]** 

15. **R&D in Advanced Battery Technologies**  
    **Q:** How are you addressing lithiation challenges in silicon-based anodes?  
    **A:** We're focusing on advanced lithium-based materials like prelithiation to support silicon anodes for higher-capacity batteries. While adoption may be faster in non-EV technologies, progressive OEMs are investing in this area, and it's part of our partnerships with customers beyond just supply.  **[ALB_3395891_24]** 

fa10777b3f57008c5803120346e36eeb084b9bac2578a75d6d9110d60775bd10

- **Albemarle is able to maintain its EBITDA guidance even at lower lithium prices** due to volume growth, cost improvements, strong contracts, and additional contributions from Talison JV, with potential for EBITDA to improve if prices recover.  **[ALB_3395891_7]** **[ALB_3395891_14]**
- **The company is proactively adjusting its cost structure and operations to be profitable and competitive even if current lower lithium prices persist**, positioning itself for long-term success.  **[ALB_3395891_19]** **[ALB_3395891_9]**
- **Albemarle is advancing Direct Lithium Extraction (DLE) technologies with two pilot projects**, which are important for leveraging low-cost resources and supporting future growth.  **[ALB_3395891_19]**

addd1ae875305cb7eadf6106ffdc89abceded427fcd9f8598e0eede475bcbf03

1. **Volume Growth Expectations**  
   **Q:** What is your expected volume growth for 2024?  
   **A:** We anticipate **10% to 20%** volume growth in 2024, depending on how quickly we can ramp up our existing startup assets.  **[ALB_3373642_8]** 

2. **CapEx Reacceleration Triggers**  
   **Q:** What will trigger reacceleration of CapEx investments?  
   **A:** Reaccelerating CapEx investments depends on higher pricing levels and positive market trends. Current prices are below operating cash levels for some assets and reinvestment is not feasible without a better long-term price outlook.  **[ALB_3373642_10]** 

3. **Inventory Impact on Demand**  
   **Q:** How are inventory levels affecting demand?  
   **A:** While upstream inventories have normalized, there is about a **two-month excess** inventory at the battery and EV levels, which will be drawn down this year and affect apparent demand.  **[ALB_3373642_11]** 

4. **Lithium Pricing and Production Cuts**  
   **Q:** Will you cut production to support lithium prices?  
   **A:** We are not planning to cut production. Despite lower spot prices, we're ramping up to meet **20% annual market growth**, expecting demand to catch up without adjusting operating rates.  **[ALB_3373642_13]** 

5. **Energy Storage Margins Outlook**  
   **Q:** What margins do you expect in energy storage under the $15/kg scenario?  
   **A:** Margins will improve throughout the year as we work through higher-cost inventory and ramp up volumes, exiting the year at a **30% margin**.  **[ALB_3373642_27]** 

6. **Capacity Outlook**  
   **Q:** What is your capacity outlook for the next few years?  
   **A:** In 2024, capacity will approach **190,000 to 200,000 tons**, driven by increased production from Chile, Australia, and the ramp-up of plants like Kemerton and Qinzhou. We expect **20%+** volume growth for several years based on existing investments.  **[ALB_3373642_24]** 

7. **Return on Invested Capital Targets**  
   **Q:** What ROIC are you targeting for investments?  
   **A:** We aim to achieve our **cost of capital** at trough pricing and **double** that at mid-cycle pricing, guiding our investment decisions.  **[ALB_3373642_19]** 

8. **U.S. Strategy and Project Delays**  
   **Q:** What's the status of your U.S. projects like Kings Mountain?  
   **A:** Due to current low prices affecting project economics, we've delayed U.S. projects like Kings Mountain and U.S. Mega-Flex. We're continuing with permitting but have paused construction and engineering, awaiting better pricing or support.  **[ALB_3373642_23]** 

9. **Price Floors and Realized Pricing**  
   **Q:** How do price floors affect your realized pricing?  
   **A:** Our realized prices are somewhat insulated by contractual floor prices and our geographical mix. Prices are stickier when market prices are low but will still follow market trends.  **[ALB_3373642_14]** 

10. **Specialties Segment Outlook**  
    **Q:** How can you maintain flat EBITDA in Specialties despite challenges?  
    **A:** Despite a challenging first quarter, we expect flat EBITDA for Specialties this year due to anticipated second-half improvements in market volume and pricing, driven by indicators like a **25% increase** in semiconductor demand in Q1.  **[ALB_3373642_16]** 

11. **Lepidolite Production Reductions**  
    **Q:** How much lepidolite production has been shut down?  
    **A:** Approximately **200,000 tons** of industry capacity has come offline, with lepidolite accounting for about **one-third to half** of that. High-cost production is ceasing due to current low prices.  **[ALB_3373642_21]** 

12. **Working Capital Build Explanation**  
    **Q:** Why did working capital build despite lower prices?  
    **A:** Working capital increased due to inventory builds from new assets in startup and timing differences in shipments affecting receivables and payables. We expect to release **$500 million to $1 billion** in cash from working capital in 2024.  **[ALB_3373642_18]** 

19a8c93fc93b8987c8ae8bca337d92e48544062296244729833012449404d1ce

- **Albemarle is reducing capital expenditures by more than $800 million to $900 million in 2025**, which may impact its long-term growth prospects and ability to capitalize on future opportunities.  **[ALB_3406450_11]**
- **Persistent low lithium prices are pressuring Albemarle's revenues**, and the company acknowledges that **more supply needs to come out of the market to support price recovery**, indicating potential challenges ahead.  **[ALB_3406450_20]**
- **Albemarle is considering selling non-core assets like Ketjen**, reflecting potential strategic shifts or financial pressures that may affect the company's future performance.  **[ALB_3406450_21]**

0984c45deb86276f63d0dbc5059b0e72e6516386724eaf08ea873a7ac871759b

- **Albemarle's lithium prices are testing price floors**, indicating significant price declines which could negatively impact revenues. The company admitted that "some of those floors... are being tested" and are coming into play for their business.  **[ALB_3382318_30]**
- **Expansion plans in North America have been paused** due to price and geopolitical issues. The CEO stated that they have "paused on that a little bit, just on some of the issues that you've described, price being a big one, how geopolitics plays into it." This suggests delays in growth strategies.  **[ALB_3382318_28]**
- **Deferral of expansion projects due to market conditions** may slow down production growth. The company has made adjustments such as deferring the third train at Wodgina, and may need to make further corrective actions if prices remain low.  **[ALB_3382318_11]**

fce1292f26d4df810b0c49aa21d60c30fc015b1f3cc5c1f12277c3ba205d9df4

- **Albemarle is delaying capital expenditures and pausing projects due to current low lithium prices**, which negatively impacts their future capacity expansion plans. The company stated that "the impact of slowing those [projects] down should prices stay low and we not return into investing in those projects will be felt in the latter part of the decade."  **[ALB_3373642_23]**
- **The company's earnings and guidance are highly dependent on a second-half recovery in lithium prices**, which may not materialize. Management mentioned that they expect to "get back to where we were last year with maybe some upside or downside based on the ranges we provided with the pricing we expect to see going forward," relying on "a second half ramp in market volume and market pricing."  **[ALB_3373642_16]**
- **A downstream inventory glut in the battery and EV supply chain is affecting apparent demand for lithium products**, suggesting ongoing market weakness that could further pressure prices and margins. The company observed that "inventory that we're seeing is further downstream... it's in the battery and EV level of supply chain. And that is affecting apparent demand to the lithium industry."  **[ALB_3373642_12]**

619ef0b0513edb61fd3a782fe62b3127fa4c1592f7fd67f6d0edc1e6b3d022b7

- **Albemarle is experiencing end market weakness in its specialties business, particularly in electronics, leading to a volume growth of 9% but a price decline; the Chinese bromine spot price decreased from \$3.11 per metric ton in Q1 to \$2.86 per metric ton in Q2.**  **[ALB_3395891_26]**
- **Rising inventories of lithium salts and price pressures in China are concerns; the company notes that most non-integrated producers are operating at a loss, and there is a need for caution given the demand versus supply situation in the lithium market.**  **[ALB_3395891_16]**
- **Albemarle's future profitability is vulnerable to market pricing pressures; if lithium prices fall below \$12 per kilogram, their EBITDA forecasts may not hold, indicating dependency on maintaining current pricing assumptions.**  **[ALB_3395891_14]**

64dc0bf1d5c4257e5d05f61463a7b9a5c4fb9d0fb91f44a0bdb5e8744c1b55e2

- Albemarle operates world-class, **low-cost lithium resources** that remain profitable even at current lower prices, supporting long-term growth.  **[ALB_3382318_11]**
- The company anticipates **higher volumes** in upcoming quarters due to ramping of new projects and facilities, with peak demand expected in the **third quarter**.  **[ALB_3382318_27]**
- **Strong EV demand growth in China** and low inventory levels signal positive market conditions, which could improve lithium prices and benefit Albemarle's earnings.  **[ALB_3382318_10]**

7426e3dddec5ad58c293c9a5fc048916b433038b5c5d5cca41dcf9a3cb4af607

1. **CapEx Plans Amid Low Prices**  
   **Q:** If prices stay low, will CapEx be sustained in 2025?  
   **A:** If prices remain at current levels, Albemarle would ramp down CapEx towards a minimum maintenance level of about **$1 billion** per year by the end of 2025, which could impact long-term growth.  **[ALB_3382318_9]** 

2. **Impact on Long-term Growth**  
   **Q:** How would reduced CapEx affect capacity growth?  
   **A:** Reducing CapEx to maintenance levels by 2025 would materially impact Albemarle's long-term growth beyond 2027, limiting the ability to expand capacity and achieve the projected **20% growth rate** through 2027.  **[ALB_3382318_24]** 

3. **Need for Higher Lithium Prices**  
   **Q:** What price does lithium need to support industry growth?  
   **A:** Prices need to increase to develop new projects crucial for supporting the EV transition; while Albemarle can operate at around **30% margin** at current prices, higher prices are necessary for acceptable returns on new investments.  **[ALB_3382318_25]** 

4. **Energy Storage Margin Outlook**  
   **Q:** How will new facilities affect EBITDA margins?  
   **A:** The ramp-up of new plants is causing about a **500 basis point** drag on margins this year; as facilities reach full rates over the next couple of years, margins should expand.  **[ALB_3382318_12]** 

5. **Cash Flow Conversion Improvement**  
   **Q:** Will operating cash conversion improve going forward?  
   **A:** Albemarle expects cash conversion to improve in 2025 due to lower cash taxes and contributions from ramping facilities; current high cash taxes are based on prior-year income.  **[ALB_3382318_19]** 

6. **Lithium Market Fundamentals**  
   **Q:** What are your thoughts on lithium market fundamentals?  
   **A:** Production cuts in China and elsewhere have marginally reduced supply, causing about a **15%** price increase; strong demand growth in China and low inventory levels indicate positive signals for prices.  **[ALB_3382318_10]** 

7. **China Restocking and Demand**  
   **Q:** Are you seeing restocking in China ahead of peak season?  
   **A:** Yes, inventories are at low levels, and part of current demand is to restock in anticipation of higher EV sales during the peak season.  **[ALB_3382318_22]** 

8. **Spodumene Auctions and Transparency**  
   **Q:** Why is Albemarle running spodumene auctions now?  
   **A:** To increase market transparency and price discovery; it's not a change in strategy, and most products are still sold through long-term agreements.  **[ALB_3382318_15]** 

9. **Tolling Volume Outlook**  
   **Q:** Will tolling volumes decrease over time?  
   **A:** Yes, as company-owned plants ramp up, tolling volumes will decrease; the intention is to be fully integrated and convert all resources with company-built assets.  **[ALB_3382318_14]** 

10. **Productivity Savings Progress**  
    **Q:** Is faster progress on productivity savings apparent in results?  
    **A:** Albemarle is slightly ahead of schedule on the **$280 million** productivity benefits goal for 2024, with some savings reflected in reduced SG&A costs.  **[ALB_3382318_13]** 

11. **Ketjen Divestment Plans**  
    **Q:** Have your thoughts on divesting Ketjen changed?  
    **A:** No, Albemarle still views Ketjen as a non-core business and anticipates a transaction when the timing and value are right.  **[ALB_3382318_17]** 

12. **Inventory Cost of Spodumene**  
    **Q:** What's the cost of spodumene inventory vs. market index?  
    **A:** Higher-priced spodumene from prior periods is still being worked off; costs should align with market prices by mid-year.  **[ALB_3382318_16]** 

13. **Second Quarter Margin Expectations**  
    **Q:** How will factors affect Q2 Energy Storage margins?  
    **A:** Expect about a **10 percentage point** increase in Energy Storage EBITDA margin in Q2 due to increased partner offtake and additional volumes; margins will normalize in subsequent quarters but remain healthy.  **[ALB_3382318_26]** 

14. **Importance of North American Refining**  
    **Q:** How important is refining capacity in North America?  
    **A:** Given geopolitical factors, Albemarle aims to have larger-scale conversion in North America but has paused some investments to assess market conditions and strategy.  **[ALB_3382318_28]** 

15. **Evolution of Cathode Chemistries**  
    **Q:** How are you adjusting to evolving cathode chemistries?  
    **A:** Balancing production of hydroxide and carbonate to meet changing demand, with an eye on long-term shifts towards solid-state batteries and lithium metal.  **[ALB_3382318_29]** 

16. **Marginal Cost of Lithium Production**  
    **Q:** Do you still see marginal cost around **$20/kg**?  
    **A:** Yes, while it changes over time, Albemarle believes the marginal cost is approximately **$20/kg**, with new projects expected to push this up.  **[ALB_3382318_30]** 

17. **Price Floors Impact**  
    **Q:** Did price floors impact pricing during low price periods?  
    **A:** Yes, some price floors were tested and have held, coming into play for some of Albemarle's business at current prices.  **[ALB_3382318_30]** 

18. **Greenbushes Resource Growth**  
    **Q:** Where will Greenbushes' next phase of growth come from?  
    **A:** Despite technical adjustments in reported grades, Greenbushes remains a world-class resource; expansion plans like CGP3 are underway, with potential for further expansion.  **[ALB_3382318_23]** 

19. **Effect of New Plants on Cash Conversion**  
    **Q:** Will ongoing project ramps affect cash conversion?  
    **A:** While project ramps currently impact cash conversion, as they become a smaller part of the portfolio, this effect will diminish, improving cash conversion over time.  **[ALB_3382318_19]** 

20. **Customer Response to Auctions**  
    **Q:** How has customer participation in auctions been?  
    **A:** Participation has been strong, with good interest and bids; auctions provide better market intelligence and have been well received.  **[ALB_3382318_20]** 

21. **Spodumene Inventory Costs**  
    **Q:** Did Q1 spodumene costs align with projections?  
    **A:** Adjustments made in Q4 reduced cost discrepancies; while some higher-cost inventory remained, costs are aligning with market prices as the year progresses.  **[ALB_3382318_17]** 

22. **Operating Spodumene Facilities**  
    **Q:** Will you make further adjustments to JV spodumene facilities?  
    **A:** No further significant adjustments are anticipated; Albemarle's resources are world-class and low-cost, and they're committed to exploiting them long-term.  **[ALB_3382318_11]** 

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Albemarle Corp (ALB)

Financials