Sorry to saybut the incumbents might expand to a point where it simply makes no economic sense for canadian spod

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Pilbara’s lithium growth plans immune to price pressure

Peter KerResources reporter

Jun 21, 2024 – 12.54pm

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Pilbara Minerals chief executive says weak lithium prices have not distracted Dale Hendersonhim from “the long-term prize”, as he revealed a preliminary plan to triple lithium sales by the end of the decade.

The company said it could expand its Pilgangoora mining hub in Western Australia to produce 2 million tonnes of lithium-rich spodumene concentrate per year at a cost that would be value accretive even if lithium prices remained anchored near current levels.

Pilbara Minerals chief executive Dale Henderson: “We will be thoughtful and disciplined about how we will trigger these growth steps.” Trevor Collens

While Pilbara has not taken a final investment decision on the 2 million-tonne growth plan, the release of Friday’s feasibility study was a signal to higher-cost lithium producers that big incumbents like Pilbara were determined to capture any future growth in demand for lithium, which is used in the batteries that power electric vehicles.

Pilbara Minerals is on track to produce between 660,000 and 690,000 tonnes of saleable product in the year to June 30, and has already invested in an expansion project to grow production to about 1 million tonnes a year within three years.

The company said the resource at Pilgangoora was large enough to host a further expansion to more than 2 million tonnes per year between 2030 and 2034 if the expansion were completed by 2028.