The Pilbara Minerals Ltd (ASX: PLS) share price is racing higher on Thursday morning.
In early trade, the lithium miner's shares are up 6% to $2.19.
Why is the Pilbara Minerals share price jumping?
Investors have been bidding the Pilbara Minerals share price higher today following the release of an update on the company's Battery Material Exchange (BMX) auction.
According to the release, before the sixth scheduled digital auction has even commenced, Pilbara Minerals has received and accepted a bid for a spodumene concentrate cargo.
The winning bid was US$6,350 per dry metric tonne (dmt) for 5,000 dmt on a 5.5% lithia FOB Port Hedland basis.
This equates to an approximate price of US$7,017 per dmt on a SC6.0 CIF China basis after adjusting for lithia content on a pro rata basis and freight costs, which is up from US$6,586 per dmt last month.
The release reveals that a deposit has been taken and the shipment is expected to be made in late July.
'Unprecedented demand'
Pilbara Minerals' incoming managing director and CEO, Dale Henderson, was delighted with the news and hit out at suggestions that lithium prices may have peaked.
He commented:
This is an exceptional outcome which provides further evidence of the unprecedented demand for battery raw materials being experienced across the global lithium-ion supply chain at this time.
Contrary to recent suggestions that the market has peaked, the evidence we are seeing at the coal-face with our customers, including this pricing outcome, suggests that demand remains incredibly strong, with a continued healthy outlook for the foreseeable future.
All eyes will be on Pilbara Minerals' next BMX auction in the second week of July to see if this strong pricing continues.
