Lithium Miner's Stock Soars on Renewed Optimism
Shares in Pilbara Minerals, the ASX's largest pure-play lithium company, have smashed through the $4 barrier for the first time in a year and a half. This significant milestone, reached on Tuesday, November 18, 2025, signals a powerful resurgence for the battery metal sector, largely fuelled by optimistic predictions from major industry players in China.
The Dale Henderson-led company saw its stock add 13 cents to finish the trading session at $4.09. This latest gain is part of an extraordinary run, with the share price climbing 49 per cent over the past month and an impressive 85 per cent since the start of the calendar year.
Short Sellers Feel the Squeeze
The rapid ascent of PLS is creating significant pressure for investors betting against the company. Data reveals that almost 14 per cent of Pilbara Minerals' stock is held by short sellers, making it the third most shorted company on the entire Australian Securities Exchange. These investors are now facing substantial losses as the bullish sentiment continues to build.
The Catalysts Behind the Comeback
The immediate trigger for the latest growth spurt was a bullish forecast from the chairman of Ganfeng, a major global lithium supplier. He publicly predicted that demand for the crucial battery commodity would surge by 30 to 40 per cent in the coming year.
This positive outlook marks a dramatic turnaround for an industry that struggled throughout 2024 and much of 2025. A slower-than-expected adoption of electric vehicles, combined with a boom in mine output from regions like Africa, South America, and China, had previously pushed prices down.
The benchmark price for spodumene concentrate, the raw material produced by all of Western Australia's lithium miners, is now sitting at $US1,140 per tonne. This represents a remarkable recovery after it had tumbled to beneath $US600 per tonne as recently as June this year.
Analysts point to several key factors driving the resurgence:
- Rising EV sales in the key Chinese market.
- Mine closures that have tightened supply.
- Growing demand for large-scale battery storage systems to support the expanding data centre industry.
Further confidence was injected into the sector earlier this month when Mineral Resources secured a deal to sell a 30 per cent stake in its active WA lithium business for $1.2 billion, a figure that far exceeded analyst expectations.
The positive sentiment is spreading across the sector. On the same day, Liontown Resources climbed another 2 per cent to $1.49, bringing its year-to-date gains to a staggering 161 per cent. While IGO bucked the trend to finish 1.6 per cent lower, it has still added 37.5 per cent to its value in 2025. This rally occurred against a tough backdrop for the wider market, with the S&P/ASX 200 index finishing down 1.9 per cent at 8469.10.
