Pilbara Lithium Sales Prices Plummet by 74% in FY24

Australian miner Pilbara Minerals saw a significant 74% drop in lithium sales prices during the 2024 financial year, as the company continued to expand production and sales from its spodumene mines in Australia and South America.

The average realized sales price fell to $1,176 per ton, a steep decline from the previous year's $4,447 per ton. Lithium prices have experienced a sharp downturn over the past year, with Metalnomist-assessed spodumene prices at $1,020-$1,120 per ton CIF China on June 25, marking a 71% drop from $3,600-$3,850 per ton on July 4, 2023. Prices have continued to decline, reaching $770-$840 per ton by August 20.

"FY24 saw a softening in lithium prices that impacted financial performance, but as a nascent industry, pricing volatility is to be expected," said Pilbara Minerals chairperson Kathleen Conlon. "While the long-term outlook appears strong, it is expected that there will be price and demand variability from time to time."

Increased Production Amid Falling Revenues

Despite the challenging market conditions, Pilbara's production and sales increased year-over-year. Lithium production rose by 17% to 725,300 tons, while sales increased by 16% to 707,100 tons. However, the company’s revenue plummeted by 69% to $1.25 billion. Pilbara Minerals also announced the approval of a new A$1 billion credit facility to support further investments in expansion projects across Australia and South America.

"Seeing the progress of our two expansion projects, P680 and P1000, during FY24 was remarkable. Despite challenging market conditions, these projects remained on schedule and on budget," said Pilbara Minerals chief executive Dale Henderson.