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Pilbara Minerals share price storms higher amid ‘unprecedented demand’ for lithium

This lithium share is having a good day…
The post Pilbara Minerals share price storms higher amid ‘unprecedented demand’ for lithium appeared first on The Motley Fool Australia. –

The Pilbara Minerals Ltd (ASX: PLS) share price is racing higher on Thursday morning.

In early trade, the lithium miner’s shares are up 6% to $2.19.

Why is the Pilbara Minerals share price jumping?

Investors have been bidding the Pilbara Minerals share price higher today following the release of an update on the company’s Battery Material Exchange (BMX) auction.

According to the release, before the sixth scheduled digital auction has even commenced, Pilbara Minerals has received and accepted a bid for a spodumene concentrate cargo.

The winning bid was US$6,350 per dry metric tonne (dmt) for 5,000 dmt on a 5.5% lithia FOB Port Hedland basis.

This equates to an approximate price of US$7,017 per dmt on a SC6.0 CIF China basis after adjusting for lithia content on a pro rata basis and freight costs, which is up from US$6,586 per dmt last month.

The release reveals that a deposit has been taken and the shipment is expected to be made in late July.

‘Unprecedented demand’

Pilbara Minerals’ incoming managing director and CEO, Dale Henderson, was delighted with the news and hit out at suggestions that lithium prices may have peaked.

He commented:

This is an exceptional outcome which provides further evidence of the unprecedented demand for battery raw materials being experienced across the global lithium-ion supply chain at this time.

Contrary to recent suggestions that the market has peaked, the evidence we are seeing at the coal-face with our customers, including this pricing outcome, suggests that demand remains incredibly strong, with a continued healthy outlook for the foreseeable future.

All eyes will be on Pilbara Minerals’ next BMX auction in the second week of July to see if this strong pricing continues.

The post Pilbara Minerals share price storms higher amid ‘unprecedented demand’ for lithium appeared first on The Motley Fool Australia.

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More reading

Here are the 3 most heavily traded ASX 200 shares on Wednesday
Is the Pilbara Minerals share price about to recharge?
Here are the 3 most heavily traded ASX 200 shares on Monday
Mineral Monday: What you need to know about lithium and which ASX shares are cashing in on it
Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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