The company is undergoing a comprehensive review of its cost and operating structure to maintain a competitive position, unlock near-term cash flow, and generate long-term financial flexibility. This includes stopping construction on Kemerton Trains 3 and 4, and putting Kemerton Train 2 into care and maintenance.

The company entered into a definitive agreement with the BMW Group to deliver battery-grade lithium to enable the automaker to pursue high-performance, premium electric vehicles. This multi-year agreement, which takes effect in 2025, is one of the company's largest ever globally by volume and value.

The company continues to pursue growth through strategic investments and partnerships, as evidenced by the ongoing evaluation of opportunities for acquisitions or joint ventures. Albemarle has entered into an agreement with Martin Marietta Materials, Inc. to make beneficial use of extracted limestone material from Albemarle's proposed Kings Mountain Mine project.

Management is undertaking proactive measures to optimize the cost structure in response to changing end-market conditions, particularly in the lithium value chain. These measures have included an ongoing comprehensive review of the cost and operating structure, in connection with which we placed Kemerton Train 2 in care and maintenance and stopped construction on Kemerton Trains 3 and 4, and initiated a global workforce reduction that impacted 6-7% of total headcount.

The company is focused on providing innovative, yet commercially viable, clean energy products and services to the marketplace to contribute to its sustainability-based revenue. This includes developing solutions for alternative fuel products and technologies, pollution control technologies and energy storage technologies.

Albemarle supports the goals of the Paris Agreement to avoid climate change by limiting global warming. Our ambition is to achieve net-zero carbon emissions by 2050. We have established greenhouse gas emission targets for each of our businesses, including reducing the scope 1 and 2 carbon-intensity of our Specialties and Ketjen businesses by 35% by 2030 (from a 2019 baseline), and growing our Energy Storage business in a carbon-intensity neutral manner through 2030.

The company conducts a substantial portion of its business outside the U.S., with approximately 83% of its net sales to foreign countries. Risks inherent in international operations include fluctuations in foreign currency exchange rates, increased transportation costs, increased regulations on scarce resources, and unexpected adverse changes in foreign laws or regulatory requirements.

Net sales shipped to China represented 36% of the total net sales. Risks particular to conducting business in China include the potential for tariffs, trade restrictions, geopolitical disputes, and government curtailment of manufacturing operations.

The long-term profitability of our operations will, in part, depend on our ability to continue to economically obtain resources, including energy and raw materials. If we fail to secure and retain the rights to continue to access these key raw materials, we may have to restrict or suspend our operations that rely upon these key resources, which could harm our business, results of operations and financial condition.

The global lithium market is highly competitive and growing very rapidly. It is characterized by aggressive expansion and entry from existing and new players, including automotive OEMs, commodity traders, junior miners, and large, well-capitalized diversified miners.

Our industries and the end markets into which we sell our products experience technological change and product improvement. Our future growth depends on our ability to gauge the direction of the commercial and technological progress in all key end markets in which we sell our products and upon our ability to fund and successfully develop, manufacture and market products in such changing end markets.

The development and adoption of new battery technologies that rely on inputs other than lithium compounds could significantly impact our prospects and future revenues. Alternative materials and technologies are being researched with the goal of making batteries lighter, more efficient, faster charging and less expensive, and some of these could be less reliant on lithium compounds.

The company is undertaking proactive measures to optimize its cost structure in response to changing end-market conditions, particularly in the lithium value chain. These measures have included an ongoing comprehensive review of our cost and operating structure, in connection with which we placed Kemerton Train 2 in care and maintenance and stopped construction on Kemerton Trains 3 and 4, and initiated a global workforce reduction that impacted 6-7% of total headcount.

During 2024, the Company's manufacturing plants operated at approximately 78% capacity, in the aggregate. This indicates potential for improved efficiency and output from existing assets.

We are investing in technology and people to reduce energy consumption, greenhouse gas emissions and air emissions. Albemarle supports the goals of the Paris Agreement to avoid climate change by limiting global warming.

We believe that in order to generate revenue growth, maintain our margins and remain competitive, we must continually invest in research and development, product and process improvements and specialized customer services.

Through research and development, we continue to seek increased margins by introducing value-added products and proprietary processes and innovative green chemistry technologies. Our green chemistry efforts focus on the development of products in a manner that minimizes waste and the use of raw materials and energy, avoids the use of toxic reagents and solvents and utilizes safe, environmentally friendly manufacturing processes.

In addition, through our research and development programs, we strive to differentiate our business by developing value-added products based on proprietary technologies.

The company is reducing planned capital expenditures in 2024 to focus on significantly progressed, near completion and in startup projects, while deferring spending on certain projects.

These transactions reflect our commitment to investing in future growth of our high priority businesses.

The Company is permitted to repurchase up to a maximum of 15,000,000 shares under a share repurchase program authorized by our Board of Directors. There were no shares of our common stock repurchased during 2024, 2023 or 2022.

While we are committed to operating in a socially responsible manner, there can be no assurance that our efforts in this respect will mitigate this potential risk. All the foregoing could have a material adverse effect on our business, financial

We are investing in technology and people to reduce energy consumption, greenhouse gas emissions and air emissions. Albemarle supports the goals of the Paris Agreement to avoid climate change by limiting global warming.

As water is a scarce resource, we understand the need to responsibly manage our water consumption not only for the preservation of the environment, but also for the viability of our local communities. We are investing in new process technologies to reduce our water footprint and expand capacity sustainably in locations with high water risk.

Adverse conditions in the economy, and volatility and disruption of financial markets can negatively impact our customers, suppliers and other business partners and therefore have a material adverse effect on our business and results of operations.

We are exposed to fluctuations in currency exchange rates, which may adversely affect our operating results and net income. Significant changes in these foreign currencies relative to the U.S. Dollar could also have an adverse effect on our ability to meet interest and principal payments on any foreign currency-denominated debt outstanding.

We are subject to government regulation in non-U.S. jurisdictions in which we conduct our business. The requirements for compliance with these laws and regulations may be unclear or indeterminate and may involve significant costs, including additional capital expenditures or increased operating expenses, or require changes in business practice, in each case that could result in reduced profitability for our business.