Albemarle (NYSE:ALB) CEO Kent Masters said Monday it is not economically viable to build a supply chain in North America and Europe that could take control of critical minerals from China.

Masters told the Financial Times that the "returns are not there" to pivot lithium supply to the west because of low lithium prices and high operating costs.

"The prices we see in the market don't really allow us to do that," the CEO said, adding that the U.S. "absolutely" is at risk of losing the race to compete with China on lithium.

The 80%-plus decline in lithium prices since the start of last year has undermined western efforts to build a domestic supply chain for metals crucial for the energy transition and reduce reliance on China, home to most of the world's refining capacity and some of the largest mining companies.

China comprise 65% of the world's refining capacity of lithium last year and is expected to generate more than half of the world's supplies through 2040, according to the International Energy Agency.

Albemarle (ALB) owns the only operating lithium mine in the U.S. in Nevada and is securing permits for a mine in North Carolina, but Masters told FT that the development of the mine depends on "what the economics look like at the time."