The senior executive overseeing Albemarle Corporation's massive lithium hydroxide processing plant in Western Australia's South West has left the company.
Leadership Change at Critical Facility
Nick Rathjen, the Site Director for the Kemerton plant, has exited the US-based lithium giant. His departure was confirmed by the company, which stated it does not comment on personnel matters. Rathjen had been a prominent figure at the site, which represents one of the largest lithium processing investments in the country.
The Kemerton plant, located near Bunbury, is a cornerstone of Albemarle's global strategy. The facility is designed to convert lithium-bearing spodumene concentrate from the Greenbushes mine into high-value lithium hydroxide, a critical component for electric vehicle batteries.
Departure Follows Major Operational Cutbacks
This leadership change follows a period of significant scaling back at the multi-billion dollar operation. In January 2024, Albemarle announced it would transition the Kemerton plant to "care and maintenance" mode, a move that resulted in the loss of approximately 120 contractor positions.
The company's decision was a direct response to the precipitous fall in global lithium prices, which have dropped more than 80% from their late-2022 peak. This market downturn has forced producers worldwide to delay expansions, reduce output, and cut costs to preserve cash flow.
Albemarle had previously signalled its intention to review its capital expenditure and staffing levels in light of the challenging market conditions. The exit of the site director is seen as part of this broader corporate recalibration.
Future of the Plant and Local Impact
The Kemerton plant's scaling back has been a blow to the local economy in the South West, which had anticipated significant long-term job creation from the processing facility. The plant's construction and initial commissioning phases provided a substantial boost to regional employment and business activity.
Albemarle has indicated that the care and maintenance phase is a temporary measure. The company maintains that the long-term fundamentals for lithium demand remain strong, driven by the global transition to electric vehicles and renewable energy storage. However, the timing for a full restart of operations remains uncertain and is tightly linked to a sustained recovery in lithium prices.
Industry analysts will be watching closely to see who Albemarle appoints to lead the Kemerton site next, as this will signal the company's commitment level and future operational strategy in Western Australia. The management of the plant during this dormant period is crucial for preserving the asset's value and ensuring it can ramp up efficiently when market conditions improve.
