Pilbara Minerals is the most shorted stock on the ASX so their...

Pilbara Minerals is the most shorted stock on the ASX so their position with AZS may be a defensive hedge rather than trying to get a strategic stake.

Market Index has them at nearly 20% of their stock being shorted. Ouch!

AFR notes the lack of options to short lithium, making PLS the most liquid and pure play form of exposure: “There appears to be a component of the market that wants to short lithium pricing and given that there’s no available mechanism to do that, they have gravitated, ....to Pilbara as a proxy for the lithium market because of our scale, pure play exposure and our liquidity,” said Chief Executive Dale Henderson. So AZS is seen as a safe place to park money by a Li company under attack.

Market Index asks:

"Will we one day see a major turnaround for lithium markets and an almighty squeeze for Pilbara Minerals?"

Either way I don't mind because it shores up AZS as a safe bet.

Meanwhile PLS is up 4% today.

Interesting times!

PS watch Money of Mine YouTube video on Mr Lithium Lowry on why Li pricing is a furphy! It's a chemical product and the pricing is depressed due to lack of demand for Chinese Li and inferior sources. AZS Li is the bee's knees in contrast.