(Reuters) -Albemarle reported a smaller-than-expected loss for the third quarter on Wednesday, as the lithium producer's tight leash on costs and resilient sales volumes softened the squeeze from persistently low prices for the metal.

Albemarle has sharpened its focus on efficiency and cash preservation as the industry grapples with the fallout of an oversupplied market.

The company lowered its 2025 capital spending forecast to around $600 million, down 65% from $1.7 billion in 2024, and said it expects to generate positive free cash flow of $300 million to $400 million this year.

Albemarle has been cutting capital spending and operating costs to manage the fall in prices lithium, a critical component used in batteries, amid the waning demand for electric vehicles.

The company reported an adjusted loss of 19 cents per share for the quarter ended September 30, compared with analysts' average estimate for a loss of 78 cents per share, according to data compiled by LSEG.

(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)