Latest news with #DaleHenderson
News.com.au
8 hours ago
- Business
- News.com.au
Lithium might be back but the ride will be wild
There's been some violent gyrations in lithium markets over the past couple of weeks but sentiment appears to be turning. Liontown Resources (ASX:LTR) managing director Tony Ottaviano pointed out on Tuesday that spodumene futures had surged by US$60 per tonne on Friday but then dropped by US$50/t on Monday. 'Notwithstanding that, we've seen some green shoots in the past two weeks,' he said. Pilbara Minerals (ASX:PLS) managing director Dale Henderson is cautiously optimistic. 'There are signs the lithium winter may be lifting, but it's early in this change,' he said yesterday. 'The lithium market has long been marked by volatility, with prices prone to sharp and sometimes counterintuitive swings. 'The volatility is not incidental. It reflects a still nascent market with limited liquidity, few futures mechanisms and undeveloped trading infrastructure. Pricing remains inefficient. 'In this environment, short term moves are often driven by sentiment, policy signals or speculative flows, rather than durable shifts in supply and demand.' Henderson pointed that the price had sunk to levels over the past year that made much of the global lithium sector unprofitable. 'This was not the result of a fundamental oversupply alone, but an immature market that remains in development,' he said. 'The recent price rally, which began late in the June quarter and accelerated into July, follows this pattern, a sentiment-led rebound triggered by perceived supply risks. 'In this case, Chinese regulatory reviews of brine and lepidolite operations and the suspension of a major project fuelled renewed price momentum.' According to reports, eight lithium mines in Jiangxi are being scrutinised, which could potentially lead to suspensions. Shanghai Metals Market's baseline forecast for August was a 300 tonne surplus, but it suggested even limited disruptions could reduce monthly supply by 2000-2500t. In the case of moderate disruption, meaning a temporary suspension of Jiangxi mines, the impact would be 8000-10,000t in August, easing to 5000t a month by the December quarter. If mines are completely shut down, it forecasts a 10,000t impact to supply in August, escalating to 14,000t a month by the end of the year. 'Now, we remain cautiously optimistic but continue to monitor whether the flagged supply side adjustments will eventuate,' Henderson said. Picking the bottom Joe Lowry, the US-based founder of advisory Global Lithium, believes the lithium winter has ended. 'I believe the market has bottomed and we've started the next cycle,' he said in a video posted to X. IGO boss Ivan Vella yesterday seemed less convinced, commenting on the unseasonably cold winter in Perth this year and comparing it to the lithium winter. 'I suspect it'll warm up in Perth a lot before we see a real shift in the lithium market,' he said. Henderson cautioned it was a partial correction at this stage and not yet a full recovery and prices still remained well below the levels needed to incentivise new production. 'While near-term pricing is volatile, the long-term demand picture remains robust and continues to strengthen,' he said. He said global electric vehicle sales reached five million units in the June quarter, up 27% year-on-year, while EV penetration hit 50% in China in June and 25% for the rest of the world. Energy storage system demand is also building. 'Forecasts indicate 40% year-on-year growth for ESS in this calendar year alone,' Henderson said. 'Together, EVs and ESS are expected to account for something like 90% of lithium demand by 2030, highlighting a powerful and durable and structural demand trend.' Late last week, Canaccord Genuity analysts conceded that demand was much stronger than it expected and low pricing had hollowed out future supply growth. 'As demand growth overtakes supply growth, we see a much tighter market and potential for continued pricing improvements,' the firm's research team, led by Reg Spencer, said. 'There still appears to be oversupply today, but we think demand growth is rapidly eating into this. By 2027, additional will supply be needed and in the absence of higher incentive levels, this could elicit a more dramatic pricing response. 'We think the down cycle in the sector has now likely passed and see lithium equities as set to benefit.' What about juniors? The renewed optimism has flowed down into the junior space. Explorer Perpetual Resources (ASX:PEC) has more than doubled this month after completing the maiden drill program at its Igrejinha project in Brazil's 'Lithium Valley', which is also home to PLS' advanced Colinas development project. Canadian players Patriot Battery Metals (ASX:PMT) and Green Technology Metals (ASX:GT1) have surged, with each adding critical minerals components to their lithium resources. Western Australian junior Global Lithium Resources (ASX:GL1) is up by more than 45% over the past month, while fellow WA explorer Delta Lithium (ASX:DLI) is up by more than 25% over the same period. Argentina-focused Pursuit Minerals (ASX:PUR) is up 24% this month and managing director Aaron Revelle last week told Stockhead he could feel the change in sentiment on the ground. 'There's more inbound interest, especially those looking to secure supply outside of China,' he said. 'Juniors with pilot scale production, strong grades, and a clear pathway to development are getting a second look. It's cautious optimism, but the tone has improved from earlier this year.' Astute Metals (ASX:ASE) is taking advantage of the 20% rise in its share price over the past few days to raise fresh capital to continue advancing its Red Mountain lithium project in Nevada. It comes after the company reported high-grade hits of 62.4m at 1210 parts per million lithium from 152.2m, including 27m at 1420ppm lithium and 33.8m at 1130ppm lithium from 34.8m, including 10.7m at 1320ppm lithium on Friday. The results will underpin an initial resource estimate to be reported by the end of the year. Meanwhile, Chariot Corporation (ASX:CC9) is positioning itself for the recovery and China's strong demand by picking up new ground. Earlier this month, the company picked up the largest portfolio of lithium assets in Nigeria, which managing director Shanthar Pathmanathan described as a global lithium hot spot.
Yahoo
26-06-2025
- Business
- Yahoo
Lithium industry bemoans 'paradox' of low prices, rising demand
By Ernest Scheyder LAS VEGAS (Reuters) -An ongoing slide in lithium prices even as demand for the battery metal continues to climb is a frustrating "paradox" not likely to be resolved before at least 2030, the world's largest producers told a major industry conference this week. Once a niche metal used primarily in greases, ceramics and pharmaceuticals, lithium's use in electric vehicles, large-scale battery storage and other electronic applications has grown rapidly, with demand up 24% last year and likely to grow 12% annually for the next decade, according to data from consultancy Fastmarkets. Oversupply from China, however, has dragged prices down more than 90% in the past two years, fueling layoffs, corporate buyouts and project delays across the globe. "We've got market pain, but on the other side is the strategic gain. That is the lithium paradox," Dale Henderson, CEO of Australian lithium miner Pilbara Minerals, told the Fastmarkets Lithium and Battery Raw Materials Conference in Las Vegas. One long-time conference attendee described the mood at this year's conference using the stages of grief as a metaphor. Last year's conference reflected denial, with the sentiment in 2025 one of acceptance, he said. Despite the price drop, attendance at the conference - considered the world's largest annual gathering of lithium investors, executives and consumers - fell only 9% from last year to roughly 1,000, according to organizers. "It's quite hard to imagine a future where lithium doesn't play a central role in the global economy," said Paul Lusty, head of battery raw materials research at Fastmarkets. Chinese miners have stockpiled supply that likely will only come down later this decade and lessen the market imbalance, he added. Others have seen an even longer timeframe. Project Blue, another minerals consultancy, does not expect lithium demand to exceed supply until 2033 at the earliest. "Lithium has no chill mode. It really is more volatile than a lot of other markets out there," said Peter Hannah, head of pricing at Albemarle, the world's largest lithium producer, which has cut staff and delayed expansion projects in response to the price drop. Much of the conference side chatter focused on efforts to curb spending, with various lithium projects - especially direct lithium extraction (DLE) projects - touting efforts to lower costs. "The issues with lithium are which mines can produce the highest quality product at the lowest cost," said Ken Hoffman, a commodity strategist with mining investment bank Red Cloud Securities. EnergyX, a DLE developer backed by General Motors, unveiled a study showing it could produce the metal in northern Chile with operating costs below $3,000 per metric ton. The estimates are preliminary, but underscore the industry's push to spend less. "Innovation is the solution to building a resilient battery supply chain," said Chris Doornbos, CEO of E3 Lithium, which is developing a DLE project in Alberta. Adding to the market tension, SQM - the world's second-largest lithium producer - laid off 5% of its workforce this week. "We do have other factors impacting the behavior of the market participants than just pure economics," Andres Fontannaz, commercial vice president of SQM's international lithium division, told the conference, a reference to how electric vehicles have become a political target in some countries. The tension is even higher for lithium projects under construction and hoping prices rise by the time they open. "This is a really tough industry to be in," said Jon Evans, CEO of Lithium Americas, which is building North America's largest lithium mine in Nevada. "It's periods of euphoria followed by periods of pain and suffering, which we're in now." Sign in to access your portfolio
Reuters
26-06-2025
- Business
- Reuters
Lithium industry bemoans 'paradox' of low prices, rising demand
LAS VEGAS, June 26 (Reuters) - An ongoing slide in lithium prices even as demand for the battery metal continues to climb is a frustrating "paradox" not likely to be resolved before at least 2030, the world's largest producers told a major industry conference this week. Once a niche metal used primarily in greases, ceramics and pharmaceuticals, lithium's use in electric vehicles, large-scale battery storage and other electronic applications has grown rapidly, with demand up 24% last year and likely to grow 12% annually for the next decade, according to data from consultancy Fastmarkets. Oversupply from China, however, has dragged prices down more than 90% in the past two years, fueling layoffs, corporate buyouts and project delays across the globe. "We've got market pain, but on the other side is the strategic gain. That is the lithium paradox," Dale Henderson, CEO of Australian lithium miner Pilbara Minerals ( opens new tab, told the Fastmarkets Lithium and Battery Raw Materials Conference in Las Vegas. One long-time conference attendee described the mood at this year's conference using the stages of grief as a metaphor. Last year's conference reflected denial, with the sentiment in 2025 one of acceptance, he said. Despite the price drop, attendance at the conference - considered the world's largest annual gathering of lithium investors, executives and consumers - fell only 9% from last year to roughly 1,000, according to organizers. "It's quite hard to imagine a future where lithium doesn't play a central role in the global economy," said Paul Lusty, head of battery raw materials research at Fastmarkets. Chinese miners have stockpiled supply that likely will only come down later this decade and lessen the market imbalance, he added. Others have seen an even longer timeframe. Project Blue, another minerals consultancy, does not expect lithium demand to exceed supply until 2033 at the earliest. "Lithium has no chill mode. It really is more volatile than a lot of other markets out there," said Peter Hannah, head of pricing at Albemarle (ALB.N), opens new tab, the world's largest lithium producer, which has cut staff and delayed expansion projects in response to the price drop. Much of the conference side chatter focused on efforts to curb spending, with various lithium projects - especially direct lithium extraction (DLE) projects - touting efforts to lower costs. "The issues with lithium are which mines can produce the highest quality product at the lowest cost," said Ken Hoffman, a commodity strategist with mining investment bank Red Cloud Securities. EnergyX, a DLE developer backed by General Motors (GM.N), opens new tab, unveiled a study showing it could produce the metal in northern Chile with operating costs below $3,000 per metric ton. The estimates are preliminary, but underscore the industry's push to spend less. "Innovation is the solution to building a resilient battery supply chain," said Chris Doornbos, CEO of E3 Lithium (ETL.V), opens new tab, which is developing a DLE project in Alberta. Adding to the market tension, SQM ( opens new tab - the world's second-largest lithium producer - laid off 5% of its workforce this week. "We do have other factors impacting the behavior of the market participants than just pure economics," Andres Fontannaz, commercial vice president of SQM's international lithium division, told the conference, a reference to how electric vehicles have become a political target in some countries. The tension is even higher for lithium projects under construction and hoping prices rise by the time they open. "This is a really tough industry to be in," said Jon Evans, CEO of Lithium Americas ( opens new tab, which is building North America's largest lithium mine in Nevada. "It's periods of euphoria followed by periods of pain and suffering, which we're in now."
Yahoo
26-06-2025
- Business
- Yahoo
Lithium industry bemoans 'paradox' of low prices, rising demand
By Ernest Scheyder LAS VEGAS (Reuters) -An ongoing slide in lithium prices even as demand for the battery metal continues to climb is a frustrating "paradox" not likely to be resolved before at least 2030, the world's largest producers told a major industry conference this week. Once a niche metal used primarily in greases, ceramics and pharmaceuticals, lithium's use in electric vehicles, large-scale battery storage and other electronic applications has grown rapidly, with demand up 24% last year and likely to grow 12% annually for the next decade, according to data from consultancy Fastmarkets. Oversupply from China, however, has dragged prices down more than 90% in the past two years, fueling layoffs, corporate buyouts and project delays across the globe. "We've got market pain, but on the other side is the strategic gain. That is the lithium paradox," Dale Henderson, CEO of Australian lithium miner Pilbara Minerals, told the Fastmarkets Lithium and Battery Raw Materials Conference in Las Vegas. One long-time conference attendee described the mood at this year's conference using the stages of grief as a metaphor. Last year's conference reflected denial, with the sentiment in 2025 one of acceptance, he said. Despite the price drop, attendance at the conference - considered the world's largest annual gathering of lithium investors, executives and consumers - fell only 9% from last year to roughly 1,000, according to organizers. "It's quite hard to imagine a future where lithium doesn't play a central role in the global economy," said Paul Lusty, head of battery raw materials research at Fastmarkets. Chinese miners have stockpiled supply that likely will only come down later this decade and lessen the market imbalance, he added. Others have seen an even longer timeframe. Project Blue, another minerals consultancy, does not expect lithium demand to exceed supply until 2033 at the earliest. "Lithium has no chill mode. It really is more volatile than a lot of other markets out there," said Peter Hannah, head of pricing at Albemarle, the world's largest lithium producer, which has cut staff and delayed expansion projects in response to the price drop. Much of the conference side chatter focused on efforts to curb spending, with various lithium projects - especially direct lithium extraction (DLE) projects - touting efforts to lower costs. "The issues with lithium are which mines can produce the highest quality product at the lowest cost," said Ken Hoffman, a commodity strategist with mining investment bank Red Cloud Securities. EnergyX, a DLE developer backed by General Motors, unveiled a study showing it could produce the metal in northern Chile with operating costs below $3,000 per metric ton. The estimates are preliminary, but underscore the industry's push to spend less. "Innovation is the solution to building a resilient battery supply chain," said Chris Doornbos, CEO of E3 Lithium, which is developing a DLE project in Alberta. Adding to the market tension, SQM - the world's second-largest lithium producer - laid off 5% of its workforce this week. "We do have other factors impacting the behavior of the market participants than just pure economics," Andres Fontannaz, commercial vice president of SQM's international lithium division, told the conference, a reference to how electric vehicles have become a political target in some countries. The tension is even higher for lithium projects under construction and hoping prices rise by the time they open. "This is a really tough industry to be in," said Jon Evans, CEO of Lithium Americas, which is building North America's largest lithium mine in Nevada. "It's periods of euphoria followed by periods of pain and suffering, which we're in now." Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
West Australian
23-06-2025
- Business
- West Australian
Dale Henderson keeps the faith amid deteriorating lithium market with $1m splurge on PLS shares
The chief of PLS keeps buying millions of dollars worth of his company's stock amid a share price slide showing no signs of abating. Dale Henderson last week bought 755,000 shares in PLS, formerly known as Pilbara Minerals, for a total of $1.01 million — according to filings released to the ASX on Monday. This on-market outlay equates to $1.34 per share and comes seven months after a $1.1m spend on PLS shares. Mr Henderson bought 500,000 shares at $2.23 apiece during this December cash splash. But the spending sprees are unlikely to make a big dent in his bank balance. Mr Henderson's package of salary, shares and performance rights totalled $4.5m for the 2024 financial year. He now owns almost 2.1 million PLS shares, worth approximately $2.5m at current prices, and 2.1m of performance rights. PLS shares have sunk 61 per cent over the past year and 78 per cent since a November 2022 peak of $5.37. Its shares were in the red on Monday despite Mr Henderson's top up, trading down 2 per cent to $1.20 by 11.30am. Mr Henderson has been a vocal lithium bull, even in comparison to his other lithium CEO counterparts. While most miners of the battery mineral were battening down the hatches during the latter half of last year, PLS inked a deal to buy Brazilian-focused lithium developer Latin Resources for $560m. Mr Henderson described the major acquisition as 'counter-cyclical'. At the time of the Latin deal, the benchmark price of the spodumene concentrate lithium product PLS produces was over $US900 per tonne. And a year prior to the date of the deal it was about $US3500/t. It is now currently languishing at just over $US600/t, as slower-than-expected uptake of electric vehicles plus booming supply out of South America, Africa and China drags prices down.
