The Pilbara Minerals Ltd (ASX: PLS) share price is currently trading at a 4-year low.
In fact, the Pilbara Minerals share price has shed more than 75% of its value over the last few years.
In October 2022, Pilbara Minerals shares were changing hands for about $5.42 each.
Today, Pilbara Minerals shares can be picked up for about $1.28 each.
Lithium miners across the board have watched their share prices tank as oversupply concerns have seen the price of lithium plummet.
Recent trade tensions and the resulting implications for global electric vehicle and battery manufacturers have cast more uncertainty over Chinese demand for lithium.
As such, it's unclear if the price of lithium will continue to fall.
But Pilbara Minerals CEO Dale Henderson is optimistic.
Image source: Getty Images
Market pain, strategic gain
Mr Henderson was a keynote speaker at this week's Fastmarkets Lithium Supply and Battery Raw Materials Conference 2025, held in Las Vegas.
His presentation, entitled 'The Lithium Paradox: Market Pain, Strategic Gain', looked to a brighter future for lithium suppliers.
Pilbara Minerals highlighted how EV sales grew 26% from 2023 to 2024 while the battery energy storage systems market grew 51% over that period.
Additionally, the lithium company noted that solar energy investment is expected to hit US$450 billion in 2025 while clean energy investment is predicted to reach US$2.2 trillion.
The Lithium Paradox presentation also stated that while lithium demand continues to be robust, with pricing near a cyclic low, it's becoming unsustainable to support industry.
Clearly, then, it would seem things are set to turn around for lithium producers.
At least Mr Henderson seems to think so.
And he's not just saying that.
Mr Henderson recently purchased 755,000 Pilbara Minerals shares for a little over $1 million.
Has lithium finally hit the bottom?
At the start of the year, Pilbara Minerals CEO Dale Henderson suggested the lithium price was about to turn around.
He told the Financial Review:
We are seeing what appears to be a bottom price point in October … and what preceded that was approximately 18 months of broad decline. Subsequently, we've seen a small rise, which is obviously great to see.
What we've observed for the December quarter could be potentially an inflection point.
But the price of lithium dropped another 20% since Mr Henderson made those comments in late January.
Still, with his money on the line, Mr Henderson's theory concerning an imminent turnaround for the price of lithium now seems more plausible.
It's difficult to tell when the price of lithium will turn around.
But while the "market pain" is evident, there is a clear shot at "strategic gain".
For now, I'll keep Pilbara Minerals on my watch list.
