Ken Brinsden: There’s Still an Incredible Dynamic of Growth in the Lithium-ion Supply Chain

At this year’s Cathodes event in Newport Beach, the Investing News Network caught up with Ken Brinsden, managing director and CEO of Pilbara Minerals (ASX:PLS), and Dale Henderson, Pilbara’s COO.

Brinsden talked about the main trends he has seen in the lithium sector this year and how they have impacted the space.

“[This year] everyone has been focused on the relative position of the Chinese domestic market as compared to what’s been happening in the rest of the globe,” Brinsden said, adding that declining lithium carbonate prices in China were a main concern for investors.

“[That] dynamic has really not influence the behavior of our customers and there’s still an incredible dynamic of growth in the lithium-ion supply chain,” he added.

Brinsden also shared his thoughts on what he thinks is ahead for prices.

“I think we’ve probably seen the lows in terms of Chinese domestic prices, and I’d like to think that the next move in the Chinese domestic market is actually up,” he said.

Speaking about the disconnect between share prices and the optimistic demand outlook seen this year, Brinsden said prices had perhaps run too hard at the end of 2017.

“I think the persistent theme is there’s still a healthy dynamic in terms of growth in the lithium-ion supply chain, there’s a significant requirement for growth in the raw materials supply base and that’s the opportunity Pilbara Minerals sees,” he added.

Brinsden also gave his best suggestion for investors new to the sector and explained what is the most important thing market watchers need to understand about the space.

For his part, Henderson talked about Pilbara Minerals’ milestones this year.

“The biggest news for us this year was a very successful build, a great ramp-up and now stepping into production,” said Henderson, who also shared what’s ahead for the ASX-listed company.   

Listen to the interview above for more insight from Brinsden and Henderson. You can also click here to listen to our full Cathodes interviews playlist on YouTube.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in contributed article. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.