PLS shares have surged more than 19 per cent in the past five trading days and are up more than 78 per cent year-to-date as the lithium producer benefits from greater demand for spodumene.
The company’s chief executive officer Dale Henderson told Reuters on the sidelines of Brazil’s COP30 climate summit that country’s government support could play a key role in bolstering lithium supply chains outside China, the dominant global processor of the battery metal.
“It’s about the government-to-government collaboration to support industrial parks and other trade agreements to bring forth and accelerate these new supply chains,” Henderson said.
“To the point about, should there be government intervention for price support, I think that needs to be carefully considered because it could actually support the wrong projects.”
Lithium remains a critical component for electric vehicle (EV) batteries and renewable energy storage, yet prices have fallen from their 2022 highs amid slower-than-expected EV market growth. Henderson suggested the maturation of trading mechanisms, including futures markets, could eventually stabilise pricing for the sector.
PLS’s recent stock performance underscores strong investor appetite for lithium producers positioned to benefit from potential government-led supply chain initiatives, particularly in regions outside China and the recent surge in the price of spodumene, the type of lithium mined in Australia.
The current price of Australian spot spodumene concentrates (CIF China), according to Shanghai Metals Markets.
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