What does Albemarle’s idling of Kemerton mean for Australia's lithium outlook?

Albemarle plans to idle its 25ktpa capacity Kemerton lithium hydroxide processing plant in Western Australia, citing “challenges facing Western hard-rock lithium conversion operations”. Kemerton processes spodumene from Albemarle’s Greenbushes mine into lithium hydroxide. In 2025, it produced an estimated 7.5kt LCE and was forecast to produce 22kt LCE in 2026. Expansions planned for 2029 could have added 75ktpa capacity. The idling of Kemerton materially weakens the near-term outlook for Australian lithium chemical refining as Kemerton was forecast to account for 46% of the country’s lithium chemical output in 2026 and had the potential to increase this to 49% by 2036.