Pilbara Minerals, Australia’s largest independent lithium producer, has expressed openness to pursuing acquisition opportunities to grow its business, but has stated that investing in its existing assets will be the priority.
During the Macquarie Australia Conference, Pilbara Minerals CEO Dale Henderson said the company is “considering and looking at inorganic growth opportunities,” but emphasized that they will not pursue growth for the sake of growth. Henderson added that the company will only proceed with an acquisition if it is a “great opportunity.”
Pilbara Minerals hired an M&A banker as its chief development officer around a year ago, signaling the company’s early-stage plans to consider acquisitions for growth. This comes at a time when lithium prices have bottomed out, and major miners like BHP’s $39 billion offer for Anglo American have underscored the strong interest in boosting exposure to metals critical to the energy transition.
However, the company has acknowledged that the domestic landscape for consolidation has become more complex, with prominent Australian mining figures like Gina Rinehart and Chris Ellison acquiring blocking stakes in many of the country’s promising lithium developers.
For now, Pilbara Minerals is focused on undertaking expansion projects, such as building a demonstration plant at its Pilgangoora project in Western Australia to produce a midstream lithium phosphate product for sale to battery chemicals makers. The company is also working on several other projects, including new ore crushing and chemicals production options, to supply electric vehicle battery makers.
Globally, the lithium market remains an attractive asset class, as evidenced by Leo Lithium’s recent agreement to sell a 40% stake in a mine in Mali for $342.7 million to China’s Ganfeng Lithium.
While Pilbara Minerals is open to “great” acquisition opportunities, the company’s priority remains on investing in and optimizing its existing assets to capitalize on the growing demand for lithium in the energy transition.