Sacks of Lithium Carbonate sit in a warehouse of the Lithium Conversion plant of U.S. lithium producer Albemarle, in La Negra, Antofagasta, Chile, March 2, 2024. REUTERS/Cristian Rudolffi

(Reuters) -Albemarle said on Monday it will sell a 51% stake in its refining catalyst solutions business, Ketjen, to private equity firm KPS Capital Partners, and divest its 50% interest in the Eurecat joint venture to France's Axens SA, in deals worth about $660 million.

Albemarle, one of the world's largest lithium producers, said it would use the proceeds for debt reduction and general corporate purposes as part of its efforts to boost financial flexibility and refocus on its core lithium and bromine units.

The sale marks Albemarle's latest move to streamline its portfolio amid a downturn in lithium prices that has pressured earnings and cash flow this year.

Once the transactions are closed, expected to be in the first half of 2026, Albemarle said it would retain a 49% minority stake in Ketjen and full ownership of its Performance Catalyst Solutions business, including the PCS plant in Pasadena, Texas.

KPS, which manages more than $19 billion in assets, said it will leverage its manufacturing experience to grow Ketjen's global refining catalyst operations and drive profitability.

(Reporting by Sumit Saha in Bengaluru; Editing by Krishna Chandra Eluri)