Pilbara Minerals (ASX:PLS) doubles down on Genfeng deal
January 15, 2024Pilbara Minerals has expanded its existing agreement with Ganfeng Lithium, doubling its supply of spodumene concentrate to 310ktpa over three years.
Under an existing agreement with Ganfeng signed in 2017, Pilbara Minerals supplies 160,000 tonnes per annum (ktpa) of spodumene concentrate from the Company’s 100% owned Pilgangoora Operation.
The agreement will see Pilbara Minerals initially almost double its supply with an additional 150kt of product in CY24, followed by an additional 100kt (with an option to increase to 150kt) in both CY25 and CY26.
All spodumene concentrate volumes will be sold based on the prevailing market price, consistent with the existing pricing in the agreement.
The expanded supply to Ganfeng is separate from the strategic partnership process that Pilbara Minerals is currently progressing. The process is targeting a conclusion in the March quarter of 2024 and remains on track.
“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 MD and CEO Dale Henderson said.
“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.
“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.”
About Pilbara Minerals
Pilbara Minerals is a mining company in Australia that explores lithium and tantalum minerals. Its lithium is used in various industrial applications, including rechargeable lithium-ion batteries for electric cars, bikes, and wheelchairs. The company serves the chemical industry, battery industry, and technical sectors.
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