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UPDATE 1-Australia's Pilbara Minerals raises spodumene concentrate output amid strong EV demand

UPDATE 1-Australia's Pilbara Minerals raises spodumene concentrate output amid strong EV demand

Reuters · 07/28/2022 02:19
UPDATE 1-Australia's Pilbara Minerals raises spodumene concentrate output amid strong EV demand

Recasts, adds background

- Lithium miner Pilbara Minerals Ltd PILBF said on Thursday it raised its spodumene concentrate output by more than half in the June quarter compared with the prior three-month period, amid "exceptionally strong" demand for battery raw materials.

The Australian company produced 127,236 dry metric tonnes (dmt) of spodumene concentrate in the quarter ended June 30, up 56% from the preceding quarter.

Spodumene, which is mostly utilised in the manufacturing of high-purity lithium for lithium-ion batteries used in electric cars, has been in high demand amid a global push for greener fuel sources.

Major lithium miners in the West have begun developing plans in an effort to reduce dependency on China in the acquisition and refinement of raw materials for EV batteries.

Automaker Ford Motor F, which is betting aggressively on EVs, has signed multiple lithium procurement agreements over the month, in a move aimed at competing better against rival Tesla.

Pilbara said in a statement that it "continued to progress work programmes and activities to increase spodumene concentrate production at the Pilgangoora project, in response to surging global demand for lithium raw materials."

Pilbara shipped 132,424 dry metric tonnes (dmt) of spodumene concentrate in the June quarter, a 127% increase from the March quarter.

($1 = 1.4294 Australian dollars)


(Reporting by Riya Sharma in Bengaluru; editing by Uttaresh.V and Subhranshu Sahu)

((Riya.Sharma@thomsonreuters.com;))