Pilbara Minerals Ltd (ASX: PLS) saw its stock price plummet by 5.63% during Friday's trading session, reflecting investor concerns over the company's recent financial performance and the broader challenges in the lithium market.

The sharp decline comes in the wake of Pilbara Minerals' latest half-year results, which revealed a significant shift from profitability to loss. The company, which owns the world's largest independent hard-rock lithium operation, reported a loss of $69 million for H1 FY24, a stark contrast to the $220 million profit posted in the previous corresponding period. Adding to investors' worries, Pilbara's cash balance saw a substantial decrease, dropping from $2.1 billion to $1.2 billion over the same timeframe.

This downturn in Pilbara Minerals' financial performance is set against the backdrop of a challenging lithium market. Lithium prices have experienced a dramatic decline over the past couple of years, falling by approximately 80%. While some industry reports suggest a positive outlook for lithium in the long term, the market remains highly volatile and unpredictable. As one of the major players in the ASX lithium space with a market cap of around $4.5 billion, Pilbara Minerals' stock movement reflects both company-specific issues and broader industry trends, highlighting the current uncertainties facing lithium producers.