The Pilbara Minerals Ltd (ASX: PLS) share price is charging higher on Tuesday.
In morning trade, the lithium miner's shares are up a decent 4% to $4.99.
This means the Pilbara Minerals share price is now up over 40% since the start of the year.
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Why is the Pilbara Minerals share price charging higher today?
The catalyst for the rise in the Pilbara Minerals share price on Tuesday has been the release of an update on the company's upcoming spodumene concentrate auction.
According to the release, the company has accepted a bid for the spodumene concentrate before the auction has even begun for a shipment that is expected from mid-November.
And the good news is that the lithium price that Pilbara Minerals has accepted is higher than it received at last month's auction via the digital Battery Material Exchange (BMX) platform.
What is the latest lithium price?
The release reveals that the company received and accepted a pre-auction offer of US$7,100/dmt (SC5.5, FOB Port Hedland basis) for a shipment of 5,000dmt on a 5.5% lithia basis. This represents a total consideration of US$35.5 million for the shipment.
Management also highlights that the offer of US$7,100/dmt equates to an approximate price of US$7,830/dmt on a SC6.0 CIF China equivalent basis after adjusting for lithia content on a pro rata basis and freight costs.
This compares favourably to last month's winning auction bid of US$7,708/dmt on a SC6.0 CIF China equivalent basis.
Overall, this appears to demonstrate that demand for lithium remains strong, which could bode well for prices in the coming quarters.
