Albemarle signs restructuring and investment agreements with Mineral Resources

Albemarle (ALB) has signed definitive agreements with Mineral Resources (MALRY) to restructure the parties’ MARBL lithium joint venture in Australia and separately for MinRes to invest in Albemarle conversion assets in China. The execution of these agreements follows the announcement of the signing of a non-binding letter of understanding in February 2022. In Australia, upon closing of the restructured MARBL arrangements, Albemarle will increase its interest in the first two conversion trains of the Kemerton processing plant from 60% to 85%. Albemarle will operate Kemerton trains 1 and 2 on behalf of the joint venture. MinRes will increase its interest in the Wodgina Lithium Mine Project from 40% to 50%. MinRes will operate the Wodgina mine on behalf of the joint venture. Albemarle and MinRes will market its own share of lithium products converted from Wodgina spodumene. Albemarle and MinRes will enter into a commercial agreement for Albemarle to arrange conversion of both parties’ shares of Wodgina spodumene. MinRes commits to fund 50% of the capital costs for downstream conversion capacity Albemarle nominates to process Wodgina spodumene. MinRes is expected to pay approximately $350M for its initial share of capital costs of this conversion capacity as of closing. Albemarle is expected to pay MinRes a completion adjustment estimated to be $100M-$150M. In China, MinRes will acquire a 50% interest in Albemarle’s 100%-owned Qinzhou and Meishan plants in China. The Meishan plant, which is under construction with a designed capacity of 50ktpa, is scheduled to be commissioned by year-end 2024. Albemarle will continue to operate Meishan and Qinzhou.