Australian lithium producer Pilbara Minerals has expanded its existing offtake agreement with Ganfeng Lithium, 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 t/y of spodumene concentrate from the company’s 100%-owned Pilgangoora Operation.
The amendment results in a total allocation of up to 310 000 t/y of spodumene concentrate over a period of three calendar years, starting in 2024.
All spodumene concentrate volumes will be sold based on the prevailing market price.
“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,” said MD and CEO Dale Henderson.
He added that the long-term outlook for the industry remained “incredibly exciting”.
The 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.