Pilbara’s Spodumene Output Falls to Three-Year Low Amid Cyclone and Maintenance

Pilbara Minerals

Cyclone Zelia and Upgrades Slash Lithium Output

Pilbara’s spodumene production dropped 34pc in Q1, hitting a three-year low of 125,000 dry metric tonnes (dmt). The decline stemmed from Cyclone Zelia disruptions and planned maintenance at the 680,000 t/yr Pilgangoora plant, which was offline for 13 days.

Compared to Q1 2024, spodumene output fell by 30pc, further impacted by the closure of the Ngungaju plant in December due to oversupply-driven price weakness. This 180,000–200,000 t/yr facility is on care and maintenance and will require four months to restart when prices recover.

Output Drops Despite Growing Lithium Hydroxide Production

Pilbara’s lithium hydroxide output rose 18pc to 3,316t in Q1, driven by its two-train facility in South Korea. Train 1 alone produced 2,546t, roughly half of its 21,500 t/yr capacity, as it continues to ramp up.

Meanwhile, sales volumes plunged by 39pc to 125,500t due to limited spodumene availability. However, the firm realized a 7pc price increase, averaging $747/t (CIF China) for 5.3pc spodumene concentrate.

Long-Term Outlook: Capacity Upgrades Ahead

Pilbara continues expansion efforts, aiming to increase spodumene output to 1.2mn dmt/yr by 2027, up from 725,300 dmt in FY2024. Upgrades could buffer future volatility and position the company for demand growth from the battery sector.

The company remains focused on balancing short-term output disruptions with long-term capacity investments in both spodumene and lithium hydroxide segments.

The Metalnomist Commentary

Pilbara’s Q1 performance reflects the fragility of lithium supply chains amid weather events and market cycles. As spodumene output falls, the firm’s pivot to lithium hydroxide and long-term capacity plans show strategic adaptation.