Financial Data and Key Metrics Changes - For Q4 2025, the company reported net sales of $1.4 billion, a 16% increase year over year, with adjusted EBITDA of $269 million, up 7% year over year [4][9] - Full year 2025 results included net sales of $5.1 billion and adjusted EBITDA of $1.1 billion, meeting or exceeding previous outlook considerations [4][5] - The adjusted EBITDA margin decreased by approximately 150 basis points compared to last year, influenced by unfavorable foreign exchange and lower specialties margins [9] Business Line Data and Key Metrics Changes - Energy storage segment saw a 14% increase in full-year volumes to 235,000 tons LCE, with Q4 net sales up 23% year over year and adjusted EBITDA up 25% [19] - Ketjen's net sales increased by 14% year over year, with adjusted EBITDA growing 39%, driven by higher sales volumes [16] - Specialties business experienced a 5% increase in net sales but a 6% decline in adjusted EBITDA due to margin compression in lithium specialties [18] Market Data and Key Metrics Changes - Global lithium demand for 2025 was 1.6 million tons, up more than 30% year over year, with expectations for 2026 demand to reach 1.8-2.2 million tons, a 15%-40% increase [24] - Stationary storage demand grew over 80% in 2025, with significant growth in China, North America, and Europe [27] - European EV demand increased by 34%, while U.S. EV demand slowed due to the removal of consumer tax credits [25][26] Company Strategy and Development Direction - The company is focusing on cost and productivity improvements, targeting an additional $100 million-$150 million in 2026 [5][34] - Strategic decisions include idling operations at the Kemerton lithium hydroxide plant to improve financial flexibility and preserve optionality [6][33] - Investments in top-tier mining resources and exploration interests remain crucial to the company's strategy [7] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for differentiated pricing to cover higher costs in Western lithium supply chains compared to China [41] - The company anticipates continued growth opportunities at Greenbushes and Wodgina, with a focus on executing against market conditions [39] - The outlook for 2026 includes expectations for stable capital spending and potential for meaningful free cash flow if current lithium pricing persists [5][22] Other Important Information - The company closed the sale of its stake in the Eurocat joint venture and expects to close the sale of a majority stake in Ketjen, generating approximately $660 million in pretax proceeds [6][15] - The company ended 2025 with $1.6 billion in cash and expects to maintain an investment-grade credit profile [28] Q&A Session Summary Question: How should we think about volume growth beyond 2027? - Management indicated that while 2026 may see flat volumes, growth opportunities remain at Greenbushes and Wodgina, with potential investments needed based on market conditions [37][39] Question: How much higher is the cost structure at Kemerton compared to Chinese assets? - The cost difference is approximately $4-$5 per kilogram, with ongoing costs to maintain the idled state of Kemerton [41][55] Question: Can you comment on the closure of Chinese lithium capacity? - Management noted that about 30,000-50,000 tons of capacity came offline in 2025, influenced by regulatory actions and demand growth [44][46] Question: What is behind the decrease in Specialties adjusted EBITDA for 2026? - The decrease is attributed to lack of demand growth in certain markets and lower lithium specialties prices following previous peaks [48] Question: How does the company plan to approach investments in the current cycle? - The company plans to be more conservative with capital spending, focusing on smaller, incremental projects with quick returns while monitoring market conditions [52][53]