US lithium giant Albemarle has announced the immediate mothballing of its final remaining refinery operations at Kemerton in Western Australia.
The "bombshell" decision will result in 250 local redundancies, as the New York-listed company cites a structural inability to compete with lower-cost jurisdictions like China.
Despite a recent uptick in spodumene prices to over US$2,000/t, CEO Kent Masters confirmed the rebound is insufficient to offset the "higher costs of producing hydroxide in Western jurisdictions."
The remaining processing train at the Bunbury-adjacent site will enter care and maintenance immediately, following a series of scale-backs over the past 30 months.
While Albemarle's mining interests at Greenbushes and Wodgina remain "core components" and are unaffected, the move highlights a widening gap in Australia’s battery supply chain strategy.
Industry leaders expressed dismay, with the Association of Mining and Exploration Companies labeling the exit "disappointing but not unexpected" amid persistent market volatility.
Despite qualifying for the Federal Government’s 2027 production tax credits, Albemarle indicated that without sustained pricing or a "willingness from customers to pay higher prices" for Western-refined products, the economic hurdles remain insurmountable.
The New Chamber of Minerals and Energy WA noted the exit serves as a "hard reality" of the challenges facing Australia’s value-adding industries.
While 250 skilled workers face an uncertain future, analysts suggest their expertise remains in high demand across the broader, more resilient resources sector.