Pilbara Minerals seals new supply deal with China’s Yahua
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The news: Lithium producer Pilbara Minerals has signed a new offtake agreement with China’s Sichuan Yahua Industrial Group to supply spodumene concentrate.
The numbers: Under the three-year agreement, Pilbara will supply Yahua between 20,000 tonnes and 80,000 tonnes of spodumene concentrate in 2024, and between 100,000 tonnes and 160,000 tonnes each year in 2025 and 2026. All sales will be made at the prevailing market price, it said.
Pilbara Minerals shares were up nearly 3% to $4.12 in early trading on the ASX.
The context: Yahua is one of the largest lithium hydroxide producers globally, with strong linkages across the lithium supply chain to key customers that include Tesla, LG and CATL.
The deal to supply additional volumes for the raw material used for the lithium chemical in EV batteries, comes as a boost for Pilbara at a time when lithium prices have slumped globally. It follows another deal to expand supply to China’s Ganfeng.
The source: ASX announcement
