Pilbara Minerals share price rebounds, wiping all of Wednesday’s losses

The Pilbara Minerals Ltd (ASX: PLS) share price is making a comeback today.

After recording a 3.16% loss at Wednesday’s market close, shares in the emerging lithium producer are up 3.49% to $4.75.

This comes as the broader ASX recovers from yesterday’s nasty $60 billion sell-off following the latest inflation numbers from the US.

Let’s take a look at what’s driving Pilbara Minerals shares higher on Thursday.

Why is the Pilbara Minerals share price up and away today?

Despite the company not making any announcements today, investors are continuing to drive up the Pilbara Minerals share price.

The rampant demand for lithium has created a widening supply gap that lithium and battery metal producers can’t keep up with.

Evidently, this has led investors to buy up shares in Pilbara Minerals and other lithium companies.

A report by the IEA projects that demand will grow by more than 40 times over the next two decades. Furthermore, graphite, cobalt and nickel are expected to follow, with demand accelerating to about 20-25 times.

The price of lithium carbonate has rocketed 240% year-on-year, which bodes well for Pilbara Minerals.

The company announced that FY23 production will ramp up to 580,000 dry metric tonnes (dmt). This represents around a 50% increase compared to the 377,902 dmt achieved in FY22.

The S&P/ASX 200 Materials (ASX: XMJ) sector is also up 6.8% in the past week and could go higher given the positive outlook on the lithium industry.

About the Pilbara Minerals share price

Pilbara Minerals shares have raced 95% higher since this time last year.

It’s worth noting that the company’s share price has equalled its all-time high of $4.79 today before slightly retracing.

Pilbara Minerals presides a market capitalisation of approximately $13.7 billion and has 2.98 billion shares on its books.

The post Pilbara Minerals share price rebounds, wiping all of Wednesday’s losses appeared first on The Motley Fool Australia.

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More reading

• The Vulcan share price sank 7% today in ASX sea of red
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Inflation fears crash Pilbara Minerals share price party
• Expert predicts stock market will crash 20% lower in the next four weeks as US inflation rages out of control
• Why are ASX 200 shares tumbling like dominos on Wednesday?

Motley Fool contributor Aaron Teboneras has positions in Pilbara Minerals Limited. 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.

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