The Pilbara Minerals Ltd (ASX: PLS) share price is making early headway today, up by 2.3% in early trade at $2.66.
Investors might be responding to a company announcement out of the lithium producer’s camp today outlining a government grant it had received.
In wider market moves, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) has also spiked more than 1% from the open today.
What was announced?
Pilbara advised that, along with its project partner, Calix, it has been awarded a $20 million grant from the Australian Government.
The grant falls under the Modern Manufacturing Initiative (MMI) — Manufacturing Translation Stream. It will be used to support the further development and demonstration of the proposed Mid-Stream Project at the Pilgangoora lithium project.
Speaking on the announcement, Pilbara Minerals’ managing director and CEO Ken Brinsden said the company is “very pleased to be able to access the Australian Government’s MMI grant funding”.
He said:
The Mid-Stream Project is expected to facilitate waste minimisation in key end-use markets, which decarbonises the hard-rock lithium supply chain and creates competitive “value-added” products that can serve global markets directly.
We are pleased to be partnered with Calix and their fantastic team, to build-on the technology and ultimately market it around the world.
The company said the funding will be used as part of a joint venture (JV) between Pilbara Minerals and Calix for the progression of a demonstration-scale chemicals facility at the Pilgangoora project. This aims to produce lithium salts for global distribution via an innovative midstream “value-added” refining process.
What’s next?
Pilbara Minerals notes that it and Calix have moved through negotiations in relation to the JV to develop a small-scale demonstration plant.
Both parties are hoping to sign in early Q3 2022, with a final investment decision on the project to be decided in late 2022 to early 2023.
In the last 12 months, the Pilbara Minerals share price has spiked almost 150%. However, it is down by 16% so far in 2022.
The post Why is the Pilbara Minerals share price climbing today? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Pilbara Minerals right now?
Before you consider Pilbara Minerals , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- 2 sold-off ASX shares essential for electric cars
- Own ASX lithium shares? Here’s a global expert’s outlook on lithium demand (and supply)
- Do any ASX lithium stocks pay dividends?
- Here are the 3 most heavily traded ASX 200 shares on Monday
- Why are ASX lithium shares off to such a flying start this week?
Motley Fool contributor Zach Bristow 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.
from The Motley Fool Australia https://ift.tt/5O76E9m
Leave a Reply