Albemarl, the American lithium production company, has succeeded in reaching a new technology that enables it to double production, according to what was announced by its CEO, Kent Masters.
The CEO of the company said that the new technology, called “DLE”, extracts lithium directly from bromine, instead of the traditional method that relies on the evaporation of salt solutions in ponds, as quoted by him. Reuters.
The American company’s step is important in order to maintain the lead in producing the basic material in the manufacture of electric car batteries.
The company, which is the largest producer of lithium in the world, raised its annual profit forecast on Wednesday, August 2, 2023, according to a separate report it published. ReutersIt was reviewed by the specialized energy platform.
Albemarle technology reaches the commercial stage
The new technology developed by Albemarle, the world’s largest lithium producer, has not yet reached the commercial stage, according to CEO Kent Masters.
He added that his company developed the “DLE” technology and plans to test it in Arkansas, specifically the city of “Smackover”, the headquarters of the bromine extraction operations from the company’s geological formations over the past years.
And Masters continued, during a conference held for investors, after the largest lithium-producing company in the world announced an increase in its quarterly profits for the second quarter, and raised its annual profit expectations: “We are striving to make sure that the new technology works correctly.”
Lithium mining mine. Photo courtesy of Energy Voice
“Tetra Technologies” and “Standard Lithium” companies intend to produce lithium – also – in the city of Smackover, according to reports monitored by the specialized energy platform.
The CEO of the company stated that if the tests are successful, the largest lithium-producing company in the world will rely on technology in its bromine extraction operations, but he did not specify a date for that.
Reuters reported, in a report last June 2023, that Chevron, Exxon Mobil, and other American companies are looking for DLE technology.
Important technology for cars
The technology provided by the American Albemarle, as the largest lithium-producing company in the world, may be one of the most important technologies that electric car companies in the world are looking for to enhance their activity.
At the top of those companies are General Motors, Stellatis, and Ford, which have bet heavily on DLE technology.
It also seems that the country of Chile, which has the largest reserves of lithium in the world, will not miss the opportunity to benefit from the new technology, if its experiments are successful, as the President of the South American country announced, earlier, his country’s intention to introduce technology to local activity gradually.
Lithium production pond – photo courtesy of Thot Co
In a related context, the share of the American Albemarle, the largest lithium-producing company in the world, rose on Wednesday, August 2, 2023, by 4.5%, recording $ 212 on the stock exchange, after raising the quarterly profit expectations.
The company’s net income increased in the second quarter of 2023 (ending on June 30) to $650 million, equivalent to $5.52 per share, compared to $406.8 million, or $3.46 per share, during the same period in 2022.
Analysts had expected quarterly net earnings per share of $4.44, according to Refinitiv data.
Sales of the world’s largest lithium-producing company doubled, recording $1.76 billion, amid expectations that the price of lithium would increase by 30% in 2023 compared to 2022.
annual profits
The American company Albemarle raised its forecast for profits for the year (2023) to 25-29.5 dollars per share, from a previous forecast of between 20.75 and 25.75 dollars.
The company said in the disclosure announcement that it expects high demand for lithium in the coming years, driven by the trend towards electrification of various sectors in the global economy.
The American company produces lithium in various countries such as: Chile, Australia and China, in addition to expanding locally in the United States, which has been the only producer of lithium for a long time.
The CEO of the company said: “We are confident in the performance of the activity in which we operate in the long term.”
He added that companies such as Tesla and Ford buy lithium from Albemarle.
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2023-08-05 16:51:48
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