Ganfeng Lithium is a leading global company across the lithium value chain, with a diverse product mix including lithium chemicals, lithium metals and lithium batteries
Pilbara Minerals amends xisting offtake agreement with Ganfeng. (Credit: CHUTTERSNAP on Unsplash)
Australian lithium producer Pilbara Minerals Limited (ASX: PLS) (Pilbara Minerals or the Company) is pleased to announce that is has executed an amendment to its existing offtake agreement with Ganfeng Lithium Group Co. Ltd and its subsidiary (Ganfeng) which materially increases short and medium term supply of spodumene concentrate to one of the world’s leading lithium chemical converters.
Under an existing agreement with Ganfeng signed in 2017, Pilbara Minerals supplies 160,000 tonnes per annum (ktpa) of spodumene concentrate from the Company’s 100% owned Pilgangoora Operation.
The amendment results in a total allocation of up to 310ktpa of spodumene concentrate over a period of three calendar years (CY24, CY25 and CY26). The terms of the amendment are detailed below:
· CY24 – Pilbara Minerals will supply an additional 150kt of spodumene concentrate taking the total supply in CY24 to 310kt.
· CY25 – Pilbara Minerals will supply an additional 100kt (with an option to increase to 150kt at Pilbara Minerals’ election) of spodumene concentrate taking the total supply in CY25 to 260kt – 310kt.
· CY26 – Pilbara Minerals will supply an additional 100kt (with an option to increase to 150kt at Pilbara Minerals’ election) of spodumene concentrate taking the total supply in CY26 to 260kt – 310kt.
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. The process remains on track and is targeting conclusion in the March quarter 2024.
Pilbara Minerals’ Managing Director and CEO, Dale Henderson, said:
“We are delighted to be expanding our valued relationship with Ganfeng, who is one of the world’s leading lithium-ion supply chain participants for lithium production. Ganfeng has extensive capability in the production of battery grade lithium products with over 20 years of industry experience and a rapidly expanding global footprint as a major global supplier.
“This increased supply with Ganfeng builds-on our established partnership as we work together to further extend our position in the growing market for lithium products. This increase demonstrates the demand for Pilbara Minerals’ spodumene concentrate while preserving optionality for the Company as we assess long-term downstream opportunities in-line with our growth strategy.
“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. We look forward to further collaboration with Ganfeng and many more successful years working together.”
Ganfeng Lithium’s President and Vice Chairman, Wang Xiaoshen, said:
“The expanding of our current offtake agreement with Pilbara Minerals marks another important step to further strengthen our valued 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. We are looking forward to our future cooperation with Pilbara Minerals.”
Source: Company Press Release