Pilbara Minerals [ASX:PLS] today announced the receipt of a $20 million grant alongside Calix Ltd [ASX:CXL].
Both PLS and CXL were up 4% in afternoon trade on Tuesday.
Riding the lithium boom, Pilbara gained 150% in the past 12 months, although the recent broad market sell-off has seen PLS shares trade 15% down year to date:
Source: Tradingview.com
Pilbara and Calix secure $20 million government grant
Western Australia lithium producer Pilbara announced that, with its project partner Calix, it’d been awarded a $20 million grant from the Australian government, supporting the development of a proposed midstream Pilgangoora Project.
The grant has been awarded under the Modern Manufacturing Initiative (MMI). It will aid the companies in their joint-chemicals facility, which is intended to produce lithium salts for worldwide distribution.
The project is planned to benefit from the grant in that it can now undergo design, procurement, construction, and commissioning.
Talks of the joint venture between Calix and Pilbara first began in May last year under a memorandum of understanding, with the companies since completing a Scoping Study focused on assessing the technical viability of a demonstration-scale chemical’s facility.
Pilbara Minerals CEO Ken Brinsden said:
‘Pilbara Minerals is very pleased to be able to access the Australian Government’s MMI grant funding, representing key backing for technology that we believe represents a giant leap forward for the hard-rock lithium raw materials supply chain.
‘The Mid-Stream Project is expected to facilitate waste minimisation in key end-use markets, which decarbonises the hard-rock lithium supply chain and creates competitive “value-added” products that can serve global markets directly. We are pleased to be partnered with Calix and their fantastic team, to build-on the technology and ultimately market it around the world.’
Source: Pilbara
Pilbara updates market on lithium outlook
Pilbara Minerals and Calix said they are ‘well progressed in negotiations in relation to the formation of a Joint Venture for the future development of a small-scale Demonstration Plant’.
The pair hope to sign a formal venture agreement in ‘early Q3 2022’.
On Tuesday, Pilbara also released a corporate presentation, updating investors on the broader lithium market.
PLS noted that the lithium-ion battery market is ‘rapidly evolving with large scale development occurring through all segments of the supply chain’.
Pilbara pointed out that lithium carbonate and hydroxide prices have ‘continued to rally’ since its inaugural BMX auction.
Source: Pilbara Minerals
Producers like Pilbara are best placed to take advantage of current elevated lithium prices.
Take Sayona Mining [ASX:SYA] and Lake Resources [ASX:LKE]. Both are years away from production — and years away from profitability.
Will the market conditions remain the same once Sayona and Lake bring their supply online? Or will prices stabilise or even fall by then?
Now, are there lithium stocks the market is overlooking right now?
According to Money Morning’s latest research report on the sector, yes.
In fact, the research report profiles three of them.
To find out more, access the report here.
Regards,
Kiryll Prakapenka,
For Money Morning
