Pilbara Minerals has extended its off take agreement with Ganfeng Lithium Group, resulting in an increased supply of spodumene concentrate.
Under the existing 2017 agreement, Pilbara Minerals has been supplying 160,000 tonnes of spodumene concentrate annually from its wholly-owned Pilgangoora operation in Western Australia. The amendment to the agreement will elevate this quantity to 310,000 tonnes per annum over a three-year period, extending until the conclusion of 2026.
Dale Henderson, Managing Director and Chief Financial Officer of Pilbara Minerals, expressed delight at expanding the valuable relationship with Ganfeng. He highlighted Ganfeng’s status as one of the leading participants in the lithium-ion supply chain, possessing extensive capabilities in battery-grade lithium production and over two decades of industry experience.
Henderson stated, “Ganfeng has extensive capability in the production of battery-grade lithium products with over 20 years of industry experience and rapidly expanding global footprint as a major global supplier.”
Wang Xiaoshen, President and Vice Chairman of Ganfeng Lithium, regarded the agreement expansion as a significant step in strengthening the company’s ties with Pilbara Minerals. He emphasised that the increased supply from Pilbara Minerals reflects Ganfeng’s commitment to supporting the growth of global customers by providing cost-competitive and high-quality lithium raw materials.
The extension of the offtake agreement marks a strategic move that aligns with the growing demand for lithium products in the global market.