- Pilbara Minerals (ASX:PLS) expands its existing offtake agreement with Ganfeng Lithium Group Co. and its subsidiary Ganfeng
- The ASX200-lister will substantially increase its supply of spodumene concentrate to one of the world’s leading lithium chemical converters
- The expanded deal spans three calendar years (CY24, CY25, and CY26), with a total allocation of up to 310kt
- This increased supply to Ganfeng operates separately from Pilbara Minerals’ ongoing strategic partnership process, which remains on track for conclusion in the March quarter of 2024
- PLS shares are down 2.54 per cent, trading at $3.65 at 10:49 am AEDT
Pilbara Minerals (ASX:PLS) has expanded its existing offtake agreement with Ganfeng Lithium Group Co. and its subsidiary Ganfeng.
Under the amended agreement, the company will substantially increase its supply of spodumene concentrate to one of the world’s leading lithium chemical converters.
The expanded deal spans three calendar years (CY24, CY25, and CY26), with a total allocation of up to 310,000 tonnes per annum (ktpa).
Pilbara Minerals has committed to supplying an additional 150 kilotonnes of spodumene concentrate, bringing the total to 310kt in CY24.
An extra 100 kilotonnes (with an option to increase to 150kt) will be supplied, totalling 260kt – 310kt in CY25.
Pilbara Minerals plans to provide an additional 100kt (with an option to increase to 150kt), resulting in a total supply of 260kt – 310kt in CY26.
All spodumene concentrate volumes will be sold based on prevailing market prices, maintaining consistency with existing pricing in the agreement.
This increased supply to Ganfeng operates separately from Pilbara Minerals’ ongoing strategic partnership process, which remains on track for conclusion in the March quarter of 2024.
“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,” PLS Managing Director and CEO Dale Henderson said.
PLS shares are down 2.54 per cent, trading at $3.65 at 10:49 am AEDT.