FMC, Albemarle Consider New Lithium Plants

In response to a future increase in demand from Tesla Motors’ (NASDAQ:TSLA) gigafactory being built in Nevada, major lithium producers are contemplating new lithium production plants, according to Bloomberg. Albemarle (NYSE:ALB) is looking at the possibility of a new lithium hydroxide plant, while FMC (NYSE:FMC) will decide by next year whether to add lithium production capacity in Asia or the US.

As quoted in the publication:

Albemarle Corp. is considering a new plant to make lithium hydroxide, the form of the metal used in electric vehicle batteries, Chief Executive Officer Luke Kissam said. FMC Corp. will decide within a year whether to build a new hydroxide plant, said CEO Pierre Brondeau. Both expect their projects will be built in Asia or the U.S.

Musk, the founder and chief executive officer of Tesla Motors Inc., expects to open next year a so-called gigafactory outside Reno, Nevada, to make batteries that power cars and store renewable energy for homes and businesses. Musk has called demand for stationary batteries “staggering” as states led by California seek ways to integrate solar and wind power into the electric grid.

“I expect over time we should get 50 percent of the growth in lithium derivatives,” Kissam said in an interview at the American Chemistry Council’s annual meeting in Colorado Springs, Colorado.

FMC, which controls half the world’s lithium hydroxide output, and Albemarle, the biggest lithium products producer, are vying for market share in the expanding sector. Philadelphia-based FMC will decide by mid-2016 whether to add capacity in the U.S. or Asia to meet demand from companies such as Tesla, Brondeau said.

Click here to read the full Bloomberg article.