July 31 (Reuters) - Albemarle, the world's

largest lithium producer, said on Wednesday it would slash costs

for the second time this year and that everything but its

dividend could be on the chopping block.

The aggressive move was caused by tumbling prices for the

metal used to make electric vehicle batteries after the company

swung to a second-quarter loss.

Shares fell 2.9% to $91 in after-hours trading.

The Tesla supplier and its peers have been buffeted

in the past year by lithium oversupply from China and a

softening of aggressive EV adoption rates that has dragged down

prices for the ultralight metal and delayed expectations for how

long the energy transition could take.

General Motors ( GM ), for example, earlier this month

backed away from its target of producing 1 million EVs annually

by 2025 in North America.

Albemarle, with operations across the globe, had already

slashed staff in January. Yet lithium prices have continued to

tumble, from an average of $20 per kilogram at the end of last

year to a current range of roughly $12 to $15 per kg, the

company said.

"The market is not improving. It's actually probably getting

a little worse," Albemarle CEO Kent Masters told Reuters. "We're

using the term 'lower for longer' from a pricing perspective,

and we have to be able to operate through that downturn."

To save costs, the company is launching a "comprehensive

review of its cost and operating structure" that should be

complete by October, Masters said. Albemarle also plans to pause

construction of an Australian processing unit and idle

production at a second one at the site.

"We will look at everything to get us kind of a mean and

lean position," he said, adding that additional layoffs and

asset sales are on the table.

The company's dividend, which has been raised annually for

30 years, likely would not be affected. "It's important for our

shareholders. So our plan is we would stick with that," he said.

The pace of EV demand growth across the globe has this year

failed to keep up with robust expectations, spooking lithium

industry investors. Goldman Sachs ( GS ) analysts, for example,

doesn't expect global lithium demand to outpace supply until

2030.

RESULTS

Albemarle reported a net loss of $188.2 million, or $1.96

per share, compared to a net profit of $650 million, or $5.52

per share, in the year-ago quarter.

Excluding one-time items, Albemarle earned 4 cents per

share. By that measure, analysts expected earnings of 41 cents

per share, according to IBES data from LSEG.

Albemarle did keep its full-year profit outlook, helped in

part by results from its catalyst division and cost cuts, which

have saved more than $150 million this year.

Despite the price drop, Albemarle and its peers have

repeatedly said they expect demand for lithium to jump later

this decade as EVs go mainstream.

The Charlotte, North Carolina-based company plans to discuss

the quarterly results on a Thursday morning call with investors.