Mineral Resources Ltd (ASX:MIN) has called out leading automakers for their slow shift to electric vehicles (EVs), as declining EV sales pressure lithium prices. CEO Chris Ellison criticized manufacturers for prioritizing profits from combustion engines instead of investing in EV development. This reluctance threatens the lithium industry, as evidenced by the current market downturn.

Mineral Resources Ltd’s FY24 Financial Performance

The company announced a 10% revenue rise to $5,278 million despite a severe drop in lithium prices by 76%. However, their underlying EBITDA declined by 40% to $1,057 million, alongside a 79% fall in net profit after tax to $158 million.

Challenges in the Lithium Sector

Despite Australia holding substantial lithium reserves, falling prices have strained the industry, largely due to decreased demand in China and global interest rate hikes. Mineral Resources is adapting to these challenges by conserving cash and cutting costs.

Diverse Operations and Future Plans

The company reported a 9% rise in mining services production, resulting in a record $550 million in underlying EBITDA. Iron ore exports also grew by 20% to $2,578 million. While lithium operations faced price declines, shipments increased, with significant output from Wodgina and Mt Marion.

Strategic Developments

In energy, the company achieved notable successes in natural gas exploration in the Perth Basin. The energy division’s progress underscores the potential for future growth.

Overall, these results highlight the robust business model of Mineral Resources Ltd, driven by diverse income streams and strategic expansions.

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