Inside Albemarle's quest to reinvent the lithium market - lithium ion batteries for sale

(Reuters) -
With global demand for lithium soaring, Albemarle Corp. is investing millions of dollars in the design of specialized types of light metals for electric vehicle batteries. Part of a strategy to maintain the position of top producers in niche markets.
This shift is due to the increasing demand from battery manufacturers such as Panasonic, Tesla's only battery supplier, for more purified lithium, which helps improve power storage and battery charging, according to sources and documents reviewed by Reuters and confirmed by the company, the strategy of Albemarle is shaped.
Lithium, once used primarily as a drug treatment for bipolar disorders, has now become one of the most advanced drugs in the world
As lithium-powered electric vehicles are becoming more and more popular, demand goodsion batteries.
Around 500,000 electric vehicles were sold worldwide in 2016, and the United States estimates that by 2022 this figure is expected to grow seven times. S.
Energy Information Administration
Albemarle's strategy includes the development of a battery research center near North Carolina headquarters, aiming to distinguish it from major competitors such as Chile's SQM and China's Tianqi Lithium company.
Albemarle has historically sold basic types of lithium in the event of short selling
Like a competitor.
Now, unlike its competitors, the company has developed dozens of lithium products that help increase power storage and battery power.
"What we are doing is not going to the moon, but a good project," said Eric Norris, head of the lithium division at Albemarle, according to two sources, at a private dinner earlier this summer, state-owned street global advisers, Goldman Sachs Group and other top shareholders attended the meeting.
As more lithium production goes live in the Americas and Asia, concerns about oversupply are high, making the development to specialized lithium a key step in alble le.
"Lithium is more of a specialty chemical than a mined product," said Joe Lowry, an independent lithium industry consultant.
"It's definitely not a commodity because it's not an alternative.
Yabao is currently working through its technical knowledge.
How to build a customer partnership with influence, it hopes to guarantee profits for decades.
Chris Terry, a mining analyst at Deutsche Bank, said: "If every new lithium project announced goes online, this may lead to oversupply in the market . ".
"There are a lot of immature places in the market, and difference is the key to success.
"By processing metals with a variety of chemicals and other processing steps, the chemical structure of lithium can be rearranged to increase electrical storage and charge, Norris said at an investor dinner, albemarle hopes this will make it even more indispensable for battery manufacturers and the electric vehicle industry.
"The battery requirements are getting stricter and a decisive step towards higher energy density batteries," said Albemarle spokesperson Haley Cobb . ".
In the long run, Yaobao is studying so-
Norris told investors, known as the "solid state" battery, that it contains no liquid and can theoretically store more power than lithium-ion batteries. While solid-
National batteries are not expected to replace lithium-ion batteries as industry standards, and they are considered a promising technological advance.
More importantly, they will consume more lithium.
Wall Street has so far supported the success of Albemarle.
17 of the 22 analysts covering the stock suggested buying the stock.
According to Thomson Reuters, the group on average believes that the stock should be 33% higher than the current level.
Albemarle agreed earlier this month that it would double the number of stock buybacks this year to $0. 5 billion.
The global lithium business is dominated by Albemarle, SQM, Tianqi and FMC Corp. , which withdrew from the lithium business as an independent unit this fall
A listed company.
SQM has publicly announced its goal of replacing Albemarle as the world's largest producer of lithium over the next decade, which Albemarle says is not an issue.
"We are not interested in being the biggest company;
"We are worried about meeting the needs of our customers and becoming the most profitable lithium company in the world," said Hobb . ".
But some on Wall Street were frightened, and shares in Albemarle fell 25% this year.
"Lithium has become the core of the company's future," said Chip Skinner, portfolio manager of the Royce fund, which holds shares in albshares le.
But supply and demand are still important.
"To help keep its crown, the United StatesS.
The company is pushing customers to long term
Term contracts for ten years or more, far more than three yearsto five-
The annual contract it currently signs.
Contracts have the option of repricing each year, compared to SQM, which is more inclined to shorter contracts and usually charges spot market prices.
This spring, Albemarle also dug away Glenn Murphy, a former GE battery scientist, and is hiring a deputy to help oversee the new battery center.
Norris told big investors about the shift to long-term investment
The term contract will guarantee the basic price, which may be up to ten years or more in some cases, regardless of market forces, to ensure a profit margin of 40% for Albemarle.
"Lithium is a relationship --
Albemarle is betting that this will bring long-term success to it
Chris Berry, an independent energy metals analyst based in New York, said.