Here's why Pilbara (ASX:PLS) shares close down today?

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 Here's why Pilbara (ASX:PLS) shares close down today?
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Highlights

  • Pilbara Minerals shares last exchanged hands at AU$4.42 each, down 0.90% on ASX today (28 November).
  • The share price fall might be because of the overall materials index which closed 0.91% lower at 17,195.60 points.
  • Pilbara and Calix have signed agreements to establish a joint venture

Shares of materials company Pilbara Minerals Limited (ASX:PLS) closed in red today (28 November) despite positive news shared by the company on thr ASX.

Pilbara shares last exchanged hands at AU$4.42 each, down 0.90% on ASX. The fall in share price might be because of the overall materials index, which closed 0.91% lower at 17,195.60 points.

What was the news shared by Pilbara?

Following Pilbara Minerals Limited's announcement of 1 June 2022, Pilbara Minerals and Calix (ASX: CXL) have signed agreements to establish an unincorporated joint venture (JV) to conceivably build and run a demonstration plant.

The mid-stream demonstration plant project has reached a significant turning point with the officialisation of the JV. The project seeks to demonstrate an improved value-added lithium product to the current industry supply chain while also possibly achieving a large reduction in carbon intensity, with possible benefits for the industry including:

Product cost: Calix's flash calcination method can process very fine spodumene concentrate at lower lithia grades and significantly increase total lithia recovery, enabling a reduced cost per lithia unit.

Carbon intensity reduction: Significant reduction in carbon emissions due to the electrification of the Mid-Stream process, which includes spodumene calcining, allowing for the use of up to 100% renewable energy.

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Data source- Company announcement dated 28 November 2022

The parties have continued to advance engineering design work and feasibility studies for the Demonstration Plant to support a final Investment decision (FID) in relation to the development of the Demonstration Plant.  The two companies have also launched a market engagement programme following the generation of market samples (lithium salt product) through a pilot test work programme that was completed in October 2022. This work will continue as part of the Joint Venture and support the Demonstration Plant's final design in the run-up to the FID to move forward with its development.

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