ASX-listed Pilbara Minerals (PLS) is seeing deepening and broadening demand for lithium, partly driven by energy security concerns, CEO Dale Henderson said on April 24 as the Australian miner nearly doubled its lithium production and beat analyst estimates.

The country's largest independent lithium producer said that talks with customers and industries during a recent visit to China backed up data showing a recovery in electric vehicle demand.

"In aggregate, what we're seeing in the sector is deepening and broadening demand and strong tailwinds for lithium operators," Henderson told Reuters.

Additionally, he noted strong demand from the stationary battery sector and emerging e-mobility sources, such as electric trucks.

PLS shares increased by 6.2% to A$6.03 apiece.

RECORD QUARTER PRODUCTION

PLS reported an 86% surge in its third-quarter spodumene concentrate production, driven by strong recovery at its Pilgangoora facility and a rebound in prices for the battery raw material.

Lithium recovery at the Pilgangoora facility in Western Australia averaged about 75%, which was a key driver behind the near-doubling of output.

In the quarter ended March 31, PLS produced a record 232 436 t of spodumene concentrate, used to make lithium, exceeding the Visible Alpha consensus estimate of 215 000 t and last year's output of 124 978 t.

Spodumene shipments rose to 195 691 t during the quarter, compared with 125 468 t a year earlier.

PLS also announced plans to ramp up its Ngungaju plant in Western Australia to steady-state production through the September quarter, with major maintenance overhauls scheduled for the ongoing quarter.

Henderson said PLS was also in talks with major chemicals producers about supply agreements and was seeking to secure more offtake deals on the same terms as its benchmark agreement with
China's Canmax announced in February.

Unit operating costs fell 11% sequentially to A$520/t, though they are expected to rise in the current quarter owing to restart-related costs at the Ngungaju plant.

"A clear beat, driven by stronger-than-expected production and a meaningful cost outperformance," said RBC Capital analyst Kaan Peker in a note.

The Perth-based miner reaffirmed its 2026 production outlook of 820 000 to 870 000 t.

Meanwhile, PLS also said it had secured a funding grant of up to A$38.1-million, or $27.17 million, from the Australian Renewable Energy Agency, which will help support operating costs during the Mid-Stream Demonstration Plant's validation phase.