Pilbara Minerals Prepares Itself for a Possible Lithium Boom (ASX:PLS)
Electric vehicles have suddenly become a hot commodity once more.
Whether it’s the boom of Tesla or the collapse of oil — EVs are making headlines. A move that is shaking up not only the auto industry, but also plenty of its key suppliers.
And when it comes to EVs, lithium is never far from the conversation.
Which is precisely why lithium miners are starting to make a move. Including companies like Pilbara Minerals Ltd [ASX:PLS], which is trading 7.83% higher today on a new update.
Alongside an activities update, Pilbara has disclosed a new, massive loan.
Securing a US$110 million debt facility to help fund the ongoing development of their Pilgangoora Project. A promising lithium-tantalum mine that could turn Pilbara into a major battery metal producer.
Crucially, this loan will help cover an existing ‘Nordic Bond’ as well. A previous financial agreement that was used to fund Pilbara’s efforts to date. Giving the company more leeway to hold on to cash for ongoing development while paying off this previous debt.
On top of that, this new debt was secured from two existing partners. Including the international bank BNP Paribas, as well as the Clean Energy Finance Corporation.
A sign that both parties are still committed to, and supportive of Pilbara’s plans. An endorsement that is bound to give the company confidence moving forward.
As Pilbara’s CEO Ken Brinsden comments:
‘Both BNP Paribas and the CEFC have been key contributors and partners in the development journey of the Pilgangoora Project. It is great to see the Australian Government backing Australian lithium projects, as well as a major international bank such as BNP Paribas, with both parties recognising the important role projects such as Pilgangoora play in the development of clean energy supply chains across the globe.’
Indeed, it is a big commitment, and a telling one at that.
It is clear now that lithium is very much on everyone’s mind of late. Giving junior miners, like Pilbara, the opportunity to leverage that interest and become more active producers.
Hopefully, for investors’ sake, Pilbara won’t have to wait long to achieve that.
The boom is back
More broadly though, this development is yet another sign of a possible lithium boom.
You’d be forgiven for thinking the sector is all but gone. After all, the last lithium bubble certainly burnt a lot of people.
Now though, we may be about to see the real deal. An EV-led boom that could actually deliver the demand that lithium pundits have always seen coming.
In fact, we’ve written an entire report on this resurgent trend. Including three of our favourite lithium stocks to invest in right now.
Editor, Money Morning