Pilbara Minerals expands Ganfeng offtake agreement

Lithium producer Pilbara Minerals (ASX:PLS) has expanded its existing offtake agreement with Ganfeng Lithium Group.

In 2017, Pilbara Minerals and Ganfeng signed an agreement for Pilbara Minerals to supply 160ktpa of spodumene concentrate from its Pilgangoora operation in WA.

The expansion results in an allocation of up to 310ktpa of spodumene concentrate over CY24, CY25 and CY26.

In CY24, Pilbara Minerals will supply a further 150kt of spodumene concentrate, taking the total supply in 2024 to 310kt, while in CY25 Pilbara Minerals will supply an additional 100kt (with the option to increase to 150kt at Pilbara Minerals’ choosing) of spodumene concentrate, taking the total supply in CY25 to 260kt – 310kt.

The final year of the agreement will see Pilbara Minerals supply a further 100kt (with the option to increase to 150kt at Pilbara Minerals’ discretion) of spodumene concentrate, taking the total supply in CY26 to 260kt – 310kt.

Pilbara Minerals managing director and chief executive Dale Henderson says the company is delighted to be expanding the partnership with Ganfeng.

“The 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,” he said.

“This increase demonstrates the demand for Pilbara Minerals’ spodumene concentrate while preserving optionally for the company as we assess long-term downstream opportunities in-line with our growth strategy.

“We look forward to further collaboration with Ganfeng and many more successful years working together.”

Ganfeng president and vice chairman Wang Xiaoshen commented on the expansion.

“The expanding of our current offtake agreement with Pilbara Minerals marks another important step to further strengthen our valued partnership with Pilbara Minerals,” he said.

“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.”