Pilbara Minerals Announces $800 Million Plan to Double Lithium Production
Pilbara Minerals, Australia’s largest independent lithium producer, announced plans on Friday to double its production capacity for lithium spodumene at the Pilgangoora operation in Western Australia. The A$1.2 billion ($799.2 million) investment aims to increase output to 1.9 million tonnes per year, pending a feasibility study's results expected in late 2025.
The expansion involves constructing a new flotation plant adjacent to the existing one, aimed at extracting lithium more efficiently while managing costs. The decision to proceed with the expansion will hinge on the feasibility study outcomes, as Pilbara Minerals navigates fluctuating prices for battery materials.
"We expect the full suite of funding options to be available for us, which could include cash flow from our operations, and government support. We could look at offtake and finance as well as debt and equity," CEO Dale Henderson told Reuters. Pilbara had A$1.8 billion in cash reserves as of March 31, 2024.
Additionally, Pilbara Minerals is exploring the processing of spodumene into a more lithium-rich product. In collaboration with Calix, the company is building a demonstration plant to trial electric calciner technology, aiming to produce lithium phosphate with 18% lithium content, significantly higher than the 5-6% in spodumene. The technology could offer new revenue streams through licensing.
Pilbara is also conducting a study with China's Ganfeng Lithium to explore the construction of a 32,000 metric-ton-per-year lithium conversion facility. The plant's location is still undecided, with several countries, including Australia, under consideration.
