Pilbara Minerals share price higher on mid-stream demo plant update

This lithium miner's shares are starting the month positively.

| More on:
A young woman with her mouth open and her hands out showing surprise and delight as uranium share prices skyrocket

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pilbara Minerals Ltd (ASX: PLS) share price has started the month positively.

In morning trade, the lithium miner's shares are up 4% to $5.08.

Why is the Pilbara Minerals share price pushing higher?

Investors have been bidding the Pilbara Minerals share price higher today after the company released an update on the mid-stream demonstration plan it is developing with Calix Ltd (ASX: CXL).

According to the release, since entering into their joint venture in November 2022, the two parties have made significant progress in the detailed front-end engineering and design (FEED) of the proposed demonstration plant.

This means the plant is now nearing a point where a final investment decision (FID) will be put to the boards of both companies.

In addition, the company advises that as the date for FID was originally targeted for the end of the 2023 financial year, both parties have agreed to bring forward certain project expenditures in respect of detailed engineering, initially planned for post-FID. This is to ensure the delivery schedule and development of the project continues unimpeded.

Both parties remain committed to finalising the studies to support the FID, which are now at an advanced stage, with a decision expected to be made by the end of July.

The demonstration plant development is being supported by $20 million in Australian Government funding via the Modern Manufacturing Initiative (MMI). An initial payment of $8 million toward the project was received on 31 May 2023.

What's next?

Management advised that a successful demonstration of the mid-stream process could lead to a commercial-scale plant being built. This would be part of the company's future mid-stream strategy and future commercialisation of the calcination technology.

The joint venture will also then look at licensing the technology to the global spodumene processing industry.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Materials Shares

Mineral Resources shares sink on Onslow Iron blow

This miner is having a tough session. Let's find out why.

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Materials Shares

MAC Copper shares in trading halt as miner flags 'potential control transaction'

MAC Copper shares are frozen while Sandfire Resources shares are the fastest risers of the ASX 200 today.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Materials Shares

Bell Potter says this ASX lithium stock could rise ~50%

The broker has just put a buy rating on this lithium stock.

Read more »

A woman stands next to a large green battery smiling and eating an apple with a lifting green arrow line in the background, indicating rising stock prices.
Share Market News

Are Liontown Resources shares a buy, hold or sell according to Macquarie?

Here’s what the broker has to say about this Lithium miner. 

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Rio Tinto share price tumbles on CEO bombshell news

The mining giant is now looking for a new leader.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

What's going on with the Fortescue share price today?

This mining giant is making changes to its leadership.

Read more »

Happy construction worker at a building site with a group of workers at the background.
Materials Shares

After its result, does Macquarie rate James Hardie shares a buy, hold or sell?

The company announced its FY25 earnings on Wednesday.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Fortescue shares fall on Iron Bridge blow

Iron Bridge is taking longer to ramp up than planned.

Read more »