UGL Secures $330 Million Contract with Australia's Leading Lithium Producer

In a significant development for the lithium industry, Albemarle, an American chemicals giant, has awarded a lucrative contract worth A$330 million to UGL, a subsidiary of Cimic Group. The contract entails the expansion of Albemarle's lithium hydroxide plant near Bunbury, Western Australia.

The primary objective of the contract is to enhance the production capacity of the plant by doubling its size. UGL will be responsible for constructing two additional production lines, referred to as trains three and four. This expansion will effectively increase the plant's output to an impressive 100,000 tonnes of lithium hydroxide per year.

The demand for lithium hydroxide, a key component in electric vehicle (EV) batteries, is poised to soar in the coming years. According to Statistia Market Insights, EV sales in Australia are projected to more than double within the next five years, rising from 36,500 in 2023 to an estimated 85,000 in 2028. By expanding its production capacity, Albemarle aims to solidify its position as Australia's leading lithium producer.

In addition to the economic benefits, this expansion project is set to generate numerous employment opportunities in the region. Albemarle anticipates creating approximately 1,000 construction jobs as part of the project. To ensure a smooth recruitment process, the company has launched an intensive three-month recruitment drive.

Expressing his satisfaction with the development, Cimic's executive chairman, Juan Santamaria, affirmed the company's commitment to supporting Western Australia's growth and contributing to the expansion of high-tech infrastructure and lithium refining in Australia. He emphasized the significance of constructing one of the world's largest lithium production facilities, which will play a pivotal role in meeting the escalating demand for lithium hydroxide.

The collaboration between Albemarle and UGL not only underscores their commitment to advancing lithium production but also highlights the growing importance of lithium in the renewable energy sector. As the world transitions towards a more sustainable future, the demand for EVs and energy storage systems continues to rise. This expansion project serves as a testament to the vital role lithium plays in powering these green technologies.

The contract awarded to UGL by Albemarle is a noteworthy milestone in the global lithium industry. With the increased production capacity, Australia will be better positioned to meet the surging demand for lithium hydroxide, both domestically and internationally. The project's economic impact, job creation, and contribution to the clean energy transition are set to benefit the region and the broader lithium market as a whole.