Down 68 percent from its 12-month high, is this ASX 200 lithium favourite an irresistible bargain to me now?

I'm keen to get exposure to the lithium sector.

And now looks like a great time to buy.

The price of lithium has tanked over the past few years.

In late 2022, spodumene was trading at above US$6000 per tonne.

The price of spodumene is currently sitting at around US$1000 per tonne, having dropped more than 80% over the last few years.

Meanwhile, lithium hydroxide, another key material used for producing lithium-ion batteries, has fallen just as much.

It's dropped from around US$72,000 a tonne in 2022 to its current value of around US$12,000 per tonne.

And Australia's ASX lithium companies have certainly felt the impact of plummeting lithium prices.

The Pilbara Minerals Ltd (ASX: PLS) share price has gone from $5.42 back in October 2022 to its current price of $1.33.

Is it time to buy?

Pilbara Minerals is a leading producer of lithium materials.

It owns the world's largest independent hard-rock lithium operation, the Pilgangoora Operation in Australia.

It also owns the Colina Lithium Project in Brazil.

In its latest half-year results, the company reported that its production increased by more than 50%.

Additionally, the latest Resources and Energy Quarterly report states that global lithium demand is forecast to grow by almost 13% a year to 2030.

According to the report, this will be largely driven by the increased uptake of electric vehicles and battery energy storage systems.

And, if all goes well, Pilbara Minerals should be well placed to capitalise on the rising demand for lithium.

Still, we all know things don't always go to plan and forecasts change.

I'm very keen on getting in on the lithium space while prices are down.

But with so much uncertainty, I want to be sure if I'm investing in the lithium space, I'm backing the strongest ASX lithium company.

While Pilbara Minerals increased production over the last half, falling lithium prices hit the company's bottom line.

The lithium producer went from posting a profit of $220 million for H1 FY24 to recording a loss of $69 million for H1 FY25.

Meanwhile, the company's cash balance dropped from $2.1 billion to $1.2 billion over the same period.

I don't have any serious concerns about Pilbara Minerals' balance sheet at this stage.

But I am asking myself: Why would I invest in a company that's burning cash when there are so many other great options out there?