Latest news with #DaleHenderson
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.
West Australian
11-06-2025
- Business
- West Australian
PLS boosts Pilgangoora's lithium mineral resource base by nearly a quarter amid supply glut
More lithium has been added to Pilgangoora's inventory as PLS pushes ahead with expansion plans at the Pilbara mine despite a torrid market. PLS, formerly known as Pilbara Minerals, has boosted the estimated lithium contained within Pilgangoora by 23 per cent to 446 million tonnes at 1.28 per cent lithium oxide (Li2O), which equates to 5.7 million tonnes of Li2O. The mineral resource upgrade followed a 104,672-metre drilling program comprising 364 holes drilled within the past two financial years. Shares in PLS spiked more than 10 per cent in early Wednesday trade, before paring back to a 3.5 per cent gain by 11.40am. 'The significant uplift in the mineral resources reaffirms our 100 per cent-owned Pilgangoora operation as one of the world's largest and highest-quality hard rock lithium assets,' PLS chief executive Dale Henderson said. 'This outcome is aligned with our strategy to optimise the operating base and unlock the full potential of this world-class asset, driving long-term value for our shareholders.' PLS wants Pilgangoora to pump out more spodumene concentrate, despite a prolonged market recession. Pilgangoora produces about 500,000 tonnes of the lithium product annually and is eyeing an increase to 850,000tpa — dubbed the P850 project. PLS has outlaid the capital required for P850. The benchmark price of the spodumene concentrate all of WA's lithium miners export is currently languishing between $US605 per tonne and $US630/t, down about a quarter this year to date and more than 80 per cent from a 2022 peak. All of the six lithium mines in Western Australia are believed to be losing money at current prices. A PLS spokesman on Friday indicated there are no plans to switch Pilgangoora off. 'The lithium market is moving through a phase of re-balancing. PLS is well positioned to navigate current conditions and capitalise on future recovery, underpinned by a multi-year strategy to scale the business, lower operating costs, and maintain a strong balance sheet,' the spokesman said. 'Combined with an embedded culture of continuous improvement to drive ongoing efficiency, this positions PLS strongly for the next phase of the cycle.' Mineral Resources and Ganfeng's Mt Marion lithium mine appears to edge out Liontown Resources' Kathleen Valley as the least profitable lithium mine in the State. But a MinRes spokesman told The West Australian on Thursday there were no near-term plans to put Mt Marion, or the company's other lithium mine Wodgina, into care and maintenance.
