Pilbara Minerals is aiming to significantly increase its lithium production capacity to two million tonnes per annum in the years ahead.
The company, which operates one of the world’s largest independent hard rock lithium mines in its Pilgangoora operation in WA, discussed its ambitious goals in more detail at the Diggers and Dealers Mining Forum in Kalgoorlie.
“We have a pathway to increase production from the mine … which has the potential, if we choose to, to double production from where we’re heading up to two million tonnes per annum,” Pilbara Minerals managing director and chief executive officer Dale Henderson said.
Pilbara Minerals’ ambitious expansion to two million tonnes per annum will position the company as a key player in the global lithium supply chain, not only bolstering its market position but also contributing significantly to the broader energy transition and supporting the development of cleaner technologies.
Henderson said he was confident in achieving the company’s objectives despite the recent price downturn, noting that the lithium price in 2022 was “four times the highs of 2018”, driven by a combination of government stimulus, technology development, and varying consumer adoption rates.
“Businesses are of course rushing to capitalise on the opportunity,” Henderson said.
Pilbara Minerals has a clear strategy focused on three core pillars: extending their low-cost position as a scale operator, disciplined capital deployment as they look to grow the operation, and preserving a strong balance sheet.
Going forward, Pilbara Minerals aims to continue its disciplined approach to growth and innovation.
“We’ll continue this track record of disciplined delivery as we enter into another ramp-up year,” Henderson said.
“The compounding growth rate for production for Pilbara has been broadly 30 per cent, and we’ll look to, as best we can, continue to grow in lockstep with the market.”
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