Pilbara Minerals has signed a new offtake agreement with Sichuan Yahua Industrial Group Co. (Yahua) for the supply of spodumene concentrate from the Pilgangoora lithium operation in Port Hedland, Western Australia.
The offtake agreement will begin in 2024 and is for a three-year term.
Under the agreement, the lithium miner will supply 20,000–80,000 tonnes (t) of spodumene concentrate to Yahua in 2024. Pilbara Minerals will first supply 20,000t, with an option to supply an additional 60,000t.
In 2025, Pilbara Minerals will supply between 100,000–160,000t of spodumene concentrate to Yahua. Pilbara Minerals will first supply 100,000t to Yahua, with an option to supply an additional 60,000t.
In 2026, Pilbara Minerals will supply between 100,000–160,000t of spodumene concentrate to Yahua. Pilbara Minerals will first supply 100,000t to Yahua, with an option to supply an additional 60,000t.
“We are delighted to have signed this offtake agreement with Yahua, a leading global lithium chemicals producer which has extensive supply chain relationships with major battery materials customers globally,” Pilbara Minerals managing director and chief executive officer Dale Henderson said.
“This offtake builds-on an established relationship between our 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 while 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 vice chairman Meng Yan echoed similar sentiments.
“We are pleased to strengthen our relationship with Pilbara Minerals via this offtake agreement which secures a reliable supply of high quality spodumene concentrate over the medium term,” Yan said.
“We look forward to working with Pilbara Minerals to further enable our global customers to support the global energy transformation.”