Currently Pilbara Minerals Limited’s [ASX:PLS] share price is up 4.04% for the day, at $0.045 at the time of writing.
The emerging lithium and tantalum producer is located in Port Hedland, in the Pilbara region of Western Australia.
Why the increase in Pilbara share price?
The supply of lithium is highly sought after, and demand is really only expected to grow.
Sales are underway, and are creating operating cash flows.
We might also consider concentrator commissioning, which has taken place as of 20 June this year.
Meaning things like: Planning, documenting, scheduling, testing, adjusting, verifying and training are all taking place to ensure that Pilbara Minerals is operating as a fully functioning system and meeting the company’s requirements.
Pilbara has also joined with offtake partners, such as General Lithium, Ganfeng Lithium, Great Wall Motors and Posco, as it works to develop its lithium projects.
What’s next for Pilbara Minerals?
Potential investors should consider the large resource reserve, and Pilbara’s potential for further exploration.
Pilbara’s aim is to fast-tract its Pilgangoora project closer to production, and capitalise on the shortfall of lithium in future global markets.
Lithium is already widely used in everyday manufacturing, such as ceramics, glass, batteries and pharmaceuticals.
This existing demand is expected to be swamped by growing consumption in technical commodities: rechargeable batteries in electronical devices, and electric motors for the latest hybrid and electric cars.
Resources Analyst, Money Morning
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