Australian lithium producer Pilbara Minerals has amended its offtake agreement with Ganfeng Lithium Group, increasing short and medium term supply of spodumene concentrate to a leading global lithium chemical converter.
Pilbara Minerals supplies 160,000 tonnes per annum of spodumene concentrate from its 100% owned Pilgangoora Operation under a 2017 agreement with Ganfeng.
The amended agreement will see a total allocation of up to 310ktpa of spodumene concentrate over a period of three calendar years (CY24, CY25 and CY26).
The increased supply to Ganfeng is part of the Company’s ongoing strategic partnership process, which is expected to be completed by March 2024.
“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,” Pilbara Minerals Managing Director and CEO Dale Henderson said.
Henderson stated that the increased supply with Ganfeng strengthens the partnership in the growing lithium product market, demonstrating demand for Pilbara Minerals’ spodumene concentrate. He noted that the increase preserves the company’s option for long-term downstream opportunities, aligning with its 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 President and Vice Chairman Wang Xiaoshen commented, “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.”
