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From the latest news from CarbonCredits, you can see that the lithium market has entered a period of price decline. This is mainly because of weaker demand conditions and an oversupply of lithium carbonate in key regions. However, this trend doesn’t favor the top lithium miners and producers across the globe. Recently Albemarle and Pilbara have taken some drastic steps to counter the lithium market lows.

Let’s see how they are navigating the challenges…

Albemarle’s Strategy for Surviving the Lithium Market Slump

As a consequence of dropping lithium prices, Albemarle Corporation is set to reduce its global workforce by between 6% and 7%, which will save around $300 million to $400 million annually as reported by S&P Global Commodity Insights.

Despite being the world’s largest lithium producer, the company reported a net loss of $1.07 billion for the third quarter. The company released its earnings report on November 6.

Kent Masters, Albemarle’s president and CEO expressed himself by saying,

“Right now we’re focused on making sure that we put the cost structure in place to compete through the bottom of the cycle. We’re trying to create the flexibility to pivot up if the market returns.”

The New Approach

The earning report revealed how the company is planning to streamline its organization by adopting a more integrated and functional model. In purview, it will reduce its 2025 capital expenditures by about 50% compared to 2024 to bring spending down to between $800 million and $900 million.

The company noted that this quarter’s results sharply contrast with the $302 million net income earned in the same period last year.

CEO Kent Masters emphasized that China has scaled back high-cost lepidolite production, while Australian miners have reduced output and laid off employees in response to market conditions. Still, these trimming measures are insufficient to stabilize lithium prices.

According to him, the surprising factor is that “African supply has filled Chinese cuts.”

On the demand side, CFO Neal Sheorey highlighted a 36% increase in demand for lithium in grid storage this year, driven by U.S. and Chinese projects, along with a 23% rise in global electric vehicle registrations.

Albemarle estimates that around 25% of the lithium industry is currently operating at a loss. The reason is again the oversupplied market. However, the top lithium producer wants to stay competitive over the long term. This is why they have conducted a thorough review of their costs and operating structure.

Albemarle

Broadly speaking, they revealed their potential future actions to address ongoing market challenges. Masters said that, while rising demand could help restore balance further production cuts will be essential to stabilize prices effectively. In response to the lingering low lithium prices, the company plans to adopt a conservative growth strategy to ensure long-term reliance.

Notably, In July, Albemarle halted expansion plans at its Kemerton lithium hydroxide refinery in Australia to manage costs more effectively.


Li-FT Power: Exploring & Developing Hard Rock Lithium Deposits In Canada

Li-FT Power Ltd. (TSXV: LIFT) recently announced its first-ever National Instrument 43-101 (NI 43-101) compliant mineral resource estimate (MRE) for the Yellowknife Lithium Project (YLP), located in the Northwest Territories, Canada.

An Initial Mineral Resource of 50.4 Million Tonnes at Yellowknife.

This maiden estimate is a major milestone for the company and marks a significant step forward in the project’s development. Li-FT Power’s upcoming mineral resource is expected to further solidify Yellowknife as one of North America’s largest hardrock lithium resources.

Click to learn more about lithium and Li-FT Power Ltd. >>

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Pilbara’s Strategic Move to Overcome Lithium Price Dip

On October 30, Pilbara Minerals announced its decision to pause construction of their Mid-Stream Demonstration Plant Pilgangoora lithium mine in Western Australia citing weak lithium prices as the main reason. The project is a JV with environmental technology company Calix Ltd formed in November 2022.

The smaller Ngungaju plant will be placed on temporary care and maintenance from December 1 which will allow the company to manage current price pressures more efficiently.

Pilbara Minerals highlighted that spodumene concentrate prices, ranging from US$750 to $800 per ton, remain below the sustainable industry benchmark of US$1,400 per ton.

  • In the September quarter, the company sold lithium at an average of US$682 per ton, a decrease from US$840 per tonne in the previous quarter.

The demonstration plant at Pilgangoora that would produce lithium salts using Calix’s advanced calcination technology was 60% completed by the end of September this year. Pilbara anticipates these measures will contribute about A$200 million in cash flow improvements for fiscal 2025.

pilbara

Cutting Capital Expenditure

  • MINING.com reported: Pilbara Minerals also revised its production guidance for fiscal 2025 to a range of 700,000 to 740,000 dry metric tonnes (dmt). It’s down from an earlier target of 800,000 to 840,000 dmt.

Meanwhile, it has cut its capital expenditure forecast to between A$565 million and A$610 million, down from a previous estimate of A$615 million to A$685 million.

Managing Director and CEO Dale Henderson,

“Given current lithium price environment, this pause enables the joint venture to time expenditure with improved market conditions. We remain fully supportive of the midstream strategy and our joint venture, recognising the Project’s potential to transform the lithium supply chain through lower emissions and value-added processing. Our commitment to our joint venture with Calix remains. We will assess with Calix resuming the Project as market conditions improve or further government support is received.”

Lithium Glut Lingers, Even as Demand Surges

According to S&P Global Commodity Insights, the lithium market is expected to face a supply surplus until at least 2027. However, this excess supply will maintain low lithium prices until demand rises to balance out the excess.

Data Source: S&P Global

Analyzing the market condition further, the lithium scenario is quite vivid. This rapidly growing demand has attracted new lithium players, but major producers are yet to make significant production cuts.

Explore here to learn everything about what’s happening with lithium now: The Lithium Paradox: Price Plummet, Supply Surge, and Demand Dip – What’s Happening Now?

The post Lithium Market Lows: How Are Albemarle and Pilbara Minerals Adapting? appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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