Pilbara targets South Korean lithium sector

Pilbara Minerals has struck an agreement to work on the possible development of a lithium processing facility in joint venture with South Korean companies Polaris Shipping and LG Chem.

The proposed facility would produce up to 30,000 tonnes of lithium hydroxide to the South Korean battery industry.

Pilbara Minerals is currently developing its Pilgangoora lithium-tantalum project in the Pilbara.

Chief executive Ken Brinsden said South Korea’s lithium-ion battery sector was budding.

“South Korea is a major global economic and industrial power with a very large and rapidly growing high-technology industrial complex and automotive industry,” he said

“Discussions like these present an opportunity to work alongside two of South Korea’s leading conglomerates to participate in the development of a world-leading downstream lithium chemicals facility servicing the rapidly growing lithium-ion battery industry in South Korea.

“This is consistent with our broader objective as a company to participate in downstream chemical facilities where this makes sense for us as an upstream supplier of spodumene concentrates, and to diversify our global sales arrangements.

“Given the scale of the existing resource and reserve at Pilgangoora – and the potential to continue to grow it with ongoing drilling – we have plenty of capacity to support both our existing customers in China and new customers elsewhere.

“It’s fair to say that Korean lithium raw material demand is now well and truly on the radar.”

Pilbara’s share price was up 4 per cent at $1.02 today.