Pilbara Minerals to cut power-related emissions 80% by 2030

The news: Lithium play Pilbara Minerals said it expects to cut its power-related carbon emissions by 80% by the end of the decade as part of its strategy to become a sustainable battery minerals producer.

The numbers: The reduction target will be relative to FY23 emission levels, and will include transitioning thermal generation at the Pilgangoora operation from diesel to natural gas, expanding onsite solar generation and connecting to wind power generation once it becomes available via the grid. PLS shares were about 1.3% lower in early trading on Thursday, fetching $3.80 per share.

The context: The second half of 2023 has been tough for lithium miners and explorers, as the mineral's price tracked lower amid concerns of oversupply and weaker global demand. Demand for EVs however appears resilient, and China, the world's largest auto market, posted record-high EV sales in the year to September despite sluggish growth in other sectors, Reuters reports.

What they said: "Successful delivery of the strategy is anticipated to achieve a ~48% reduction in power emissions intensity by 2027 via our own natural gas and solar power generation initiatives at site and up to 80% reduction by 2030 should emerging wind power generation opportunities become regionally available," Pilbara Minerals chief executive Dale Henderson said in a statement.