US-based chemical supplier Albermarle held a groundbreaking ceremony for a lithium hydroxide plant in Meishan (Sichuan) on July 8. Lithium hydroxide is a material used in the production of cathode materials for lithium-ion batteries. This event was first reported by other Chinese news outlets.
According to the available information, the plant will have an initial production capacity of 50,000 metric tons per year. This will be enough to meet the power battery demand of approximately 1.5 million new energy vehicles per year. A further calculation that factors in the life cycle of power batteries also reveals that the plant will contribute to a reduction of around 100 million metric tons per year in CO2 emissions. The agreement to invest in the plant was signed in October 2021. With the construction phase starting this July, the plant is expected to be completed and ready for operation by 2024.
Albermarle is among the global top 100 chemical companies and maintains market leadership in lithium-based materials, bromine-based materials, and catalysts used in petroleum refining processes. To expand its presence in the Asia-Pacific region, Albermarle will be building two new lithium hydroxide plants in China during 2021—one in Meishan and one in Zhangjiagang (Jiangsu). The latter will also have an initial production capacity of 50,000 metric tons per year. Based on the reporting by Chinese news outlets, these projects together constitute the largest fixed asset investment made by the company in the country so far. Additionally, Albermarle has recently acquired a conversion plant in Qinzhou (Guangxi).