Pilbara Minerals Ltd (PLS.AU) saw its stock price plummet by 8.79% in pre-market trading, as short sellers continue to target lithium producers amid concerns over prolonged low lithium prices. The significant drop comes as the company finds itself among the most shorted stocks on the Australian Securities Exchange (ASX).

According to the latest short position report from the Australian Securities and Investments Commission (ASIC), Pilbara Minerals has a short interest of 13%, which has increased from the previous week. This high level of short interest suggests that many investors are betting against the company's stock, expecting it to decline further. The persistent bearish sentiment surrounding lithium stocks appears to be driving this negative pressure on Pilbara Minerals' share price.

The company's stock has been under considerable pressure over the past year, with shares down approximately 65% since the same time last year. This dramatic decline reflects the challenging market conditions faced by lithium producers, as well as growing skepticism about the near-term prospects for lithium prices. As one of Australia's prominent lithium miners, Pilbara Minerals' performance is closely watched as an indicator of the broader lithium market's health, making it a prime target for short sellers who believe that the sector's struggles are far from over.