Albemarle Earnings: Falling Lithium Prices Drive Lower Outlook

Albemarle's third-quarter results and management's updated guidance reflected the decline in lithium spot prices that will weigh on near-term profits. In response, management said it will review the company's lithium growth investments with a goal to preserve financial flexibility. We think the likely outcome will be Albemarle slowing its lithium capacity investment, which is in line with how the company has historically operated during a lithium price downturn.