Let's start off on China. It's obviously one of the biggest
markets for you guys and a key area of focus. Because you've talked already about how
in terms of framing the reasons why prices have been falling, the pricing
mechanisms, the price wars. When do you see that improving?
Good question, Heidi, and when we get a lot. In terms of
engaging with our customers, there's a range of opinions ranging from it could
be a matter of weeks,through til maybe late in the calendar year.
The truth is, obviously, nobody really knows.
We think the answer is probably somewhere in the middle.
It's part of our quarterly guidance. Last week, we guided maybe sometime in
the back half of this calendar year. And there's indicators which kind of
looks positive to support that. Is it more of the market process story
or an aggregate demand story for China? Does it, I guess, ultimately change the
structural focus if you if it were for lithium demand?
Sure. I think the long-term demand coast looks
really compelling and consensus seems to support that. The world is converting to
lithium and AVs and plenty more lithium is required.
I think everyone's grappling with what this short term price pullback, what's
behind that and how long will it last. From our perspective,
it has indicators to be more short dated.
What we're seeing in terms of raw demand is pretty solid outside of China.
But we'll wait and see. There's quite a few factors influencing
China's demand. So we'll wait and watch and see how that
plays out. In terms of the broader macro
environment, obviously uncertainty over whether global economic demand story
goes, but also higher rates and potentially even higher rates still.
And that's the environment that you're dealing with.
Does that impact investment opportunities and decisions?
For our business, the key investment decisions relate to
getting on with a growth pathway or
Organic growth expansion.
And, you know, we've not held back on that.
We've made those investment decisions and we're getting on with
those expansions as rapidly as we can because we think Pilbara's in this
incredible position to have one of the largest operating assets globally that
can be expanded. And we think despite the short term
price pullback, it's an incredible market and Pilbara looks for us to
capitalize on that once we've once we've got expanded.
So we're not holding back on our investment.
You talked about investment opportunities within the sector, as I
guess a kind of a leading indicator of sentiment.
So when you take a look at the Albemarle
line town dynamic, what does that tell you about optimism in the outlook?
Yeah, I think it's a really strong point of evidence which says that these
groups looking to bid online town believes the long term outlook.
So full credit to Albemarle who walking the talk.
You know, their CEO has spoke to the necessity for all lithium projects to
come online. And here he is, or they are voting with
their money. So great to see.
And I think it just underscores the support for the long term proposition
for lithium. The long term outlook also depends on
public policy as well. We're seeing Australia hoping to
introduce full efficiency standards by the end of the year.
Is it too little, too late, do you think that's going to really meaningfully
encourage EV take up? What would you like to see from the
policy? So, great to see more support
coming for EVs. And Australia has been a bit of a
laggard compared to some of the leading countries out there.
So it's good to see steps in the right direction.
Should more be done? Of course, I'm gonna say yes, because it
supports EVs and that supports lithium.
And I think probably the place to look is to look at some of the other
countries who've been very progressive and successful.
I think Australia would be well served to copy some of those
subsidy methods and techniques.