Australian lithium producer Pilbara Minerals (ASX:PLS) has expanded it offtake agreement with Ganfeng Lithium Group Co. (SZSE:002460), which materially increases short and medium-term supply of spodumene concentrate to the lithium chemical converter.
Under the existing agreement with Ganfeng signed in 2017, Pilbara Minerals supplies 160,000 tonnes per annum of spodumene concentrate from the company’s 100% owned Pilgangoora Operation.
The amendment results in a total allocation of up to 310,000tpa of spodumene concentrate over 3 calendar years.
Pilbara Minerals says consistent with the existing pricing in the agreement, all spodumene concentrate volumes will be sold based on the prevailing market price.
This increased supply to Ganfeng is separate to the company’s strategic partnership process which continues to be progressed in parallel. Pilbara Minerals notes that process remains on track and is targeting conclusion in the March quarter of 2024.
Pilbara Minerals’ Managing Director and CEO Dale Henderson says the increased supply with Ganfeng builds-on its established partnership to further extend the company’s position in the growing market for lithium products.
“The long-term outlook for the industry remains incredibly exciting. Both Ganfeng and Pilbara Minerals remain focused on extending our respective positions as major, low-cost producers in the burgeoning lithium market.”
Ganfeng Lithium’s President and Vice Chairman, Wang Xiaoshen adds that expanding the current offtake agreement marks another important step in its partnership with Pilbara Minerals.
“The increased supply from Pilbara Minerals also demonstrates our strong commitment to support the growth of our global customers through the creation of cost-competitive and high-quality lithium raw materials.”
Write to Adam Orlando at Mining.com.au
Images: Pilbara Minerals
