Albemarle (ALB)-Caterpillar Join Forces for Sustainable Mining
Albemarle Corporation ALB inked an agreement with Caterpillar Inc. CAT to collaborate on initiatives to support a sustainable battery value chain and environmentally responsible mining operations.
The primary objective of this collaboration is to facilitate Albemarle's efforts in establishing the first-ever zero-emissions lithium mining site in North America, located in Kings Mountain, NC. A vital aspect of this endeavor involves adopting cutting-edge, battery-powered mining equipment. The companies have also signed an agreement that allows Caterpillar to utilize Albemarle's lithium, produced in North America, in its battery manufacturing processes. The firms are exploring potential partnerships in researching and developing battery cell technology and recycling methods.
The partnership between Albemarle and Caterpillar exemplifies Albemarle's unwavering commitment to pioneering innovative solutions that positively impact our planet. This collaboration is characterized by a mutually beneficial dynamic, where both companies act as customers and suppliers to one another, pooling their innovative capabilities to make meaningful contributions to global sustainability.
Incorporating battery-powered Caterpillar machinery and advancements in battery cell technology heralds the emergence of fresh opportunities in sustainable mining. Albemarle is enthusiastic about replicating the strides it made at its Salar de Atacama operation, where it garnered acclaim as the world's first lithium producer to undergo a third-party audit and subsequently publish a comprehensive report adhering to the standards set forth by the Initiative for Responsible Mining Assurance (IRMA).
Albemarle Corporation Price and Consensus
Albemarle Corporation price-consensus-chart | Albemarle Corporation Quote
The agreements forged for lithium sourcing and potential joint research and development activities represent a significant stride toward expediting progress. They will play a pivotal role in constructing a robust, adaptable, and eco-friendly value chain for Caterpillar's electrified equipment offerings. Concurrently, these initiatives will provide invaluable support to Albemarle as it embarks toward more environmentally sustainable mining operations.
Albemarle noted that this collaboration with Caterpillar offers a remarkable opportunity to extend their global influence beyond their established leadership in the electric vehicle sector. Together, they aim to introduce environmentally responsible mining equipment to the market, emphasizing their unwavering dedication to advancing the clean energy transition.
This announcement follows Albemarle's recent receipt of a $90 million award from the Department of Defense, which will support domestic mining and lithium production expansion to bolster the nation's battery supply chain.
Shares of Albemarle have lost 38.7% in the past year against an 8.7% rise of the industry.
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Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold), while Caterpillar sports a Zacks Rank #1 (Strong Buy). Some other stocks in the basic materials space are WestRock Company WRK, sporting a Zacks Rank #1, and Alamos Gold Inc. AGI, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for Westrock’s current year is pegged at $3.02. In the past 60 days, WRK’s current-year earnings estimate has been revised upward by 29%. WRK beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 30.7%. The company’s shares have rallied 13.9% in the past year.
The earnings estimate for Alamos’ current year is pegged at 43 cents, indicating a year-over-year growth of 53.6%. The Zacks Consensus Estimate for AGI current-year earnings has been revised 7.5% upward in the past 60 days. The company’s shares have risen roughly 56.8% in the past year.
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