Australia’s largest lithium miners have no chance of moving into more profitable parts of the battery supply chain without substantial government subsidies, according to Dale Henderson, the chief executive of $12.3 billion lithium producer Pilbara Minerals.
Citi Australia’s metals and mining research team has a buy rating on Pilbara Minerals, but cut its valuation by 20¢ to $4.50 a share on Tuesday as it factored in lower profits on softer lithium prices.Advertisement The broker expects the raw lithium spodumene concentrate material dug up by miners for shipment to China to fetch around $US2350 a tonne over the next year.
Ms McCutcheon said she expected spot lithium prices to track sideways for the next 12 to 18 months as the broker saw forward electric vehicle order books as weaker than strong expectations.“The lithium market is very volatile and it’s such a new market with this big electric vehicle demand thematic, the market’s doubled in just two years,” she said.