*

Albemarle reports $1.11 billion net loss in Q3

*

Company slashes capital budget amid 71% drop in lithium

prices

*

CEO Masters expects lithium prices to stay low for the

foreseeable future

(Adds details throughout from earnings release, CEO interview,

stock movement)

By Ernest Scheyder

Nov 6 (Reuters) - Albemarle, the world's largest

lithium producer, said on Thursday it lost more than $1 billion

in the third quarter and that it would slash its capital budget

amid a 71% drop in prices for the electric vehicle battery

metal.

The results underscore the supply glut engulfing the entire

lithium industry amid oversupply from China and a softening of

aggressive EV adoption rates that has dragged down prices for

the ultralight metal.

Charlotte, North Carolina-based Albemarle is making

business decisions on the assumption that lithium prices stay in

their current range of roughly $12 to $15 per kilogram for the

foreseeable future, CEO Kent Masters told Reuters.

"We do think the price is going to be lower for longer,"

Masters said. "We're positioning the company to compete at that

level."

The company last month announced its second

reorganization in as many years, describing the move to shrink

its business units as necessary to "adapt to dynamic market

conditions."

The moves - including cutting at least 6% of its staff -

are expected to save at least $300 million to $400 million each

year moving forward.

The company also cut its 2025 capital budget in half

from this year's levels to a range of $800 million to $900

million.

Masters said the trimmed budget would be used to

maintain facilities that operate "at the lower end of the cost

curve," although he declined to name specific sites.

Albemarle, which has also

cut other costs twice this year

, reported a net loss of $1.11 billion, or $9.45 per share,

compared with a net profit of $302.5 million, or $2.57 per

share, in the year-ago quarter.

Revenue fell more than $1 billion to roughly $1.35

billion, although volumes of lithium sold rose from the year-ago

quarter. The sales drop was partially offset by long-term supply

contracts with customers that include Tesla.

Shares fell less than 1% in after-hours trading to

$96.50.

The company has been financially supported in part by

Washington, including a recent grant of

$67 million from the Energy Department

.

Funds that Albemarle has received under President Joe

Biden are expected to all or partially dry up once

President-elect Donald Trump

takes office in January, a concern that dragged down shares

of Albemarle and peers on Wednesday.

"We work on both sides of the aisle," Masters said when

asked about the U.S. election results. "The energy transition is

happening. It's a global dynamic. We'll have to see what Trump

does."

FUTURE DEMAND EXPECTATION

Lithium miners got a partial reprieve from the

oversaturated market in September when China's CATL said it

would cut production. Albemarle and its peers have repeatedly

said they

expect demand for lithium to jump later this decade

.

North American EV sales hit a record in the third

quarter, executives noted, adding that they expect EV prices to

match those of internal combustion engine vehicles by next year.

Interest has been red-hot in the space from outsiders,

including Exxon Mobil ( XOM ). One of Albemarle's top rivals,

Arcadium, agreed last month to be bought by mining

giant Rio Tinto in a

$6.7 billion deal

that will create the world's third-largest lithium

producer.

Masters said Albemarle is not looking to acquire a

rival.

"At this stage, I don't see us being acquisitive," he

said. "If we're on someone else's list, that I can't control."

Albemarle plans to discuss the quarterly results on a

Thursday morning call with investors.

Chile's SQM, the world's second-largest

lithium producer, is set to post quarterly results later this

month.