Pilbara Minerals (ASX:PLS) has executed a new offtake agreement with Sichuan Yahua Industrial Group Co. Ltd to supply spodumene concentrate from its 100% owned Pilgangoora Operation.
Yahua is a lithium chemicals company and one of the largest lithium hydroxide producers globally, which Pilbara Minerals says has major connections across the lithium supply chain.
The offtake agreement starts CY24 for a 3-year term and includes Pilbara Minerals to supply, and Yahua to take, 20,000 tonnes of spodumene concentrate (with an option for up to an additional 60,000t at Pilbara Minerals’ election).
In CY25 the Australian lithium producer will supply to Yahua 100,000t of spodumene concentrate (with an option for up to an additional 60,000t at Pilbara Minerals’ election) resulting in a total supply in CY25 of between 100-160,000t.
Pilbara Minerals will then supply 100,000t of spodumene concentrate (with an option for up to an additional 60,000t) in CY26.
Pilbara Minerals’ Managing Director and CEO Dale Henderson, says the offtake builds-on an established relationship between the companies, having previously completed a number of sales together.
“The agreement enables Yahua to further expand its supply chain commitments with key global battery customers and builds-out Pilbara Minerals medium-term sales profile whilst preserving long-term optionality as we assess downstream opportunities in-line with our growth strategy.
We are pleased to formalise this key relationship and support our shared objective to grow our respective positions in the lithium battery materials supply chain.”
Yahua’s Vice Chairman, Meng Yan says the offtake secures a reliable supply of quality spodumene concentrate over the medium term.
Write to Adam Orlando at Mining.com.au
Image: Pilbara Minerals
