Pilbara Minerals, Australia’s largest pure-play lithium producer, anticipates a demand recovery following the restart of a major lithium mine and refinery in China, even as it reported a net loss for the half-year ending December 31.
The company posted a net loss of A$69 million ($44 million) due to lithium carbonate prices plummeting 87% since their 2022 peak and declining over 22% year-on-year. Pilbara’s shares remained steady at A$2.01 following the announcement.
CEO Dale Henderson expressed optimism about a market rebound, citing Contemporary Amperex Technology (CATL) restarting operations in China.
As the world’s largest EV battery manufacturer, CATL’s move signals supply chain constraints and potential price recovery.
“The restart of that particular mine is a positive indicator,” Henderson told Bloomberg TV. “After 18 months of steady price declines leading to curtailments, we expect prices to rise, positioning Pilbara to benefit from the rally.”
Pilbara Minerals, which operates the Pilgangoora lithium mine in northern Australia, was forced to temporarily shut a processing plant due to squeezed margins.
However, the company has expanded sales and recently acquired Latin Resources, which holds lithium assets in Brazil.
Although Pilbara’s current focus remains on spodumene production, Henderson did not rule out future ventures into lithium brine. “It’s on the table, but if we explore it, it will likely be on a small scale,” he noted.
