PLS 2.13% $3.83 pilbara minerals limited

Couldn't find it posted anywhere else but this was from AFR back...

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    Couldn't find it posted anywhere else but this was from AFR back in November 24, stating Ken Brinsden on the committee with lithium carbonate and potentially hydroxide contracts to start trading in 2020. Good for lithium and good for PLS to have a seat at the table.

    "Carbonate in the box seat as LME embraces lithium

    The London Metals Exchange is most likely to embrace lithium carbonate when it pushes into trading of the battery mineral next year, but chief executive Matthew Chamberlain has not ruled out pricing other lithium products as well.Lithium's transition from off-Broadway commodity to the mainstream will take a big step forward in about seven months' time, when London's 142-year-old commodities exchange is expected to launch its first lithium contract.Trading of lithium futures on the LME could help Australian banks lend to the local lithium mining sector, which has expanded from one to seven mines over the past three years.

    That extraordinary growth was mostly funded by shareholder equity and lithium consumers paying for product in advance, with banks reluctant to lend to the sector because of its opaque pricing and an inability to hedge their loans through the sort of futures contracts the LME intends to introduce.However, the LME's embrace of lithium comes as the market for the metal is fragmenting across a range of different lithium products.

    While lithium carbonate with purity beyond 99.5 per cent has been the industry benchmark over the past decade, battery manufacturers are increasingly focused on buying lithium hydroxide. Lithium producers are selling a range of intermediate products, like the spodumene concentrate that Australia's lithium export industry is built upon.Battery manufacturers' growing preference for lithium hydroxide is important for Australian lithium miners, who can be competitive against South American rivals when making lithium hydroxide but not lithium carbonate.

    Mr Chamberlain said offering futures contracts for lithium carbonate was the LME's default position, but not its final position.''Even though carbonate was definitely the default, this world is moving so quickly that what was default yesterday may not be the default tomorrow," he told The Australian Financial Review this month.''It might still be that we do launch a carbonate and a hydroxide contract, but the danger there is you split liquidity.''

    Australian influence

    The LME has established a "Lithium Committee" to advise on the introduction of the futures contract. The committee will include Australian perspectives from Pilbara Minerals managing director Ken Brinsden and Tianqi's Perth-based sales director Ron Mitchell.''I feel very confident about lithium because I think there are natural sellers, such as the guys trying to lock in mine finance, and there are natural buyers, such as the auto guys who are committing now to ten- and twenty-year programs of electrification needing these materials,'' Mr Chamberlain said.''That is what you need as a market, you need both sides of the market to be there,"The lack of lending from mainstream banks has created opportunities for higher interest rate lenders like Tribeca Investment Partners credit fund, which loaned money to Alita Resources and sold that debt to Galaxy Resources shortly before Alita went into administration and receivership.''Lithium is a key component of any electric vehicle battery cathode technology, and therefore it is an area we want to build into,'' Mr Chamberlain said."
 
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