General Discussion Topics, page-97283

The only problem is the elephant in the room.

Pilbara Minerals boss Dale Henderson said a number of factors, including discounting on fossil fuel-powered vehicles and an end to electric vehicle subsidies in China, were behind the softer prices.Mr Henderson pointed to US battery chemical giant Albemarle’s $5.5 billion bid for Liontown Resources and a string of big investments by car makers such as GM and Ford as an indicator of long-term strength in demand for lithium as electric vehicle sales continue to grow.RELATED QUOTESPLSPilbara Minerals$4.240 7.07%1 year1 dayApr 22Oct 22Apr 231.9003.8005.700Updated: Apr 28, 2023 – 5.51pm. Data is 20 mins delayed.He said there was a price war between sellers of internal combustion engine (ICE) vehicles and EVs in China.“The ICE vehicles within China have been heavily discounted to move that stock in advance of some tightening on Chinese emission standards coming into effect from July 1,” he said.“So that of course has put some strong short-term competition we think in the market around EVs versus ICE.”Partnering opportunitiesPilbara Minerals is poised to move even further downstream, and is in talks about a partnership deal to convert spodumene from an expansion of its Pilgangoora mine about 120 kilometres south of Port Hedland into high-value lithium chemicals.Pilbara Minerals already has an 18 per cent stake in a 43,000-tonne-a-year lithium hydroxide plant being built by POSCO in Korea with an option to own up to 30 per cent.The company said it was pursuing additional partnering opportunities with a diverse range of players in the battery materials supply chain, and that a deal was expected before the end of the year.Mr Henderson said talks were still at an early stage. He said that based on preliminary discussions, Pilbara could invest at Pilgangoora to produce an intermediate material, whereas any lithium hydroxide plant was likely to involve an offshore partnership.