Why Pilbara, MinRes, Liontown and IGO just got a major tailwind
China's new lithium royalty framework increases costs for domestic lepidolite producers, benefiting Australian spodumene miners like Pilbara Minerals, MinRes, and IGO. MinRes has sold 30% of its lithium business to POSCO for US$765 million, valuing its assets significantly above consensus estimates and reducing its net debt. These developments suggest a recovery in lithium prices after a two-year decline, with Pilbara Minerals' shares up over 200% from June lows. The reforms and strategic investments indicate a positive outlook for the lithium sector.
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