Posted on 13 Mar 2024
Australian lithium producer Pilbara Minerals announced Tuesday a new spodumene concentrate offtake agreement with Shenzhen-listed leading lithium hydroxide producer Sichuan Yahua Industrial Group.
According to Pilbara’s statement, the deal covers three years from 2024 to 2026. In the first year, the miner will supply Yahua with 20,000 tonnes of spodumene concentrate, with an option for an additional 60,000 t at Pilbara’s election.
In 2025 and 2026, Yahua will take 100,000 t/y of spodumene concentrate, with an option to up the procurement by 60,000 t/y, which would result in supplies of up to 160,000 t each year.
In line with other existing agreements, the spodumene concentrate will be sold based on the prevailing market price. This supply, to come from the Pilgangoora Operation in Western Australia, is separate from Pilbara’s strategic partnership process which continues to progress in parallel.
“This offtake builds on an established relationship between our companies, having previously completed a number of sales together,” comments Pilbara’s ceo Dale Henderson. “The agreement enables Yahua to further expand its supply chain commitments with key global battery customers and builds out Pilbara Minerals medium-term sales profile whilst preserving long-term optionality as we assess downstream opportunities in line with our growth strategy.”
The miner is said to be planning a spot auction of approximately 5,000 t of spodumene concentrate on 18 March. The starting price has not yet been revealed, Kallanish notes.
According to traders, on Tuesday the average spot price of Australian spodumene concentrate (6% lithia) reached $1,035/tonne cif China.
Source:Kallanish
