PILBF - World's largest battery maker sells $405M stake in lithium miner Pilbara

Big Chinese battery maker CATL has sold its nearly 5% stake in Australian lithium producer Pilbara Minerals ( OTCPK:PILBF ) for A$601M (~US$405M), Reuters reported Thursday.

CATL, which bought its 4.9% stake for A$0.30/share in 2019, reportedly has sold the holding of 146M shares in a block trade at A$4.10/share, thus pocketing A$555M from its original investment.

The sale does not impede CATL's access to Pilbara's ( OTCPK:PILBF ) lithium supply since Pilbara has an offtake agreement with battery chemicals maker Yibin Tianyi, in which CATL is a major shareholder.

Industry sources said the sale could indicate an expectation that lithium prices will fall .

ETF: ( LIT )

In a move that has accelerated a slide in lithium prices, CATL reportedly has offered smaller Chinese electric vehicle makers discounted prices on batteries .

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