March 22 (Reuters) – Albemarle Corp ( ALB.N ) said on Wednesday it would invest at least $1.3 billion in its new lithium hydroxide plant in Chester County, South Carolina, to help meet growing demand for batteries that power electric vehicles.
Lithium prices have risen over the past year as automakers seek new supplies of the battery metal as they build fleets of all-electric vehicles.
Albemarle has also been commercializing lithium for use in other markets, including lubricants, glass and tires.
The company said it expects the South Carolina facility to produce about 50,000 metric tons of battery-grade lithium hydroxide annually, with the potential to double output.
The facility is expected to help produce about 2.4 million electric vehicles annually, Albemarle said.
The site is aligned with the Inflation Reduction Act that incentivizes the locating of critical minerals in North America.
Albemarle is among 20 manufacturing and processing companies receiving grants from the US Department of Energy to domestically mine lithium, graphite and nickel, build the nation’s first large-scale lithium processing facility, build facilities to build cathodes and other battery parts and expand battery recycling. .
Construction is expected to begin in late 2024, Albemarle said in a statement.
Reporting by Sourasis Bose and Arunima Kumar in Bangalore; Editing by Anil D’Silva and Vinay Dwivedi
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