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Pilbara Minerals expands Ganfeng Lithium offtake agreement

Australian lithium producer Pilbara Minerals Limited executed an amendment to its existing offtake agreement with Ganfeng Lithium Group Co. Ltd and its subsidiary (Ganfeng) which materially increases short- and medium-term supply of spodumene concentrate to one of the world‘s leading lithium chemical converters.

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 amendment results in a total allocation of up to 310ktpa of spodumene concentrate over a period of three calendar years (CY24, CY25 and CY26).

The terms of the amendment are:

  • CY24 - Pilbara Minerals will supply an additional 150kt of spodumene concentrate taking the total supply in CY24 to 310kt.

  • CY25 - Pilbara Minerals will supply an additional 100kt (with an option to increase to 150kt at Pilbara Minerals’ election) of spodumene concentrate taking the total supply in CY25 to 260kt - 310kt.

  • CY26 - Pilbara Minerals will supply an additional 100kt (with an option to increase to 150kt at Pilbara Minerals’ election) of spodumene concentrate taking the total supply in CY26 to 260kt - 310kt.

Consistent with the existing pricing in the agreement, all spodumene concentrate volumes will be sold based on the prevailing market price.

This increased supply to Ganfeng is separate to the company’s strategic partnership process which continues to be progressed in parallel. The process remains on track and is targeting conclusion in the March quarter 2024.

Pilbara Minerals owns 100% of the world’s largest, independent hard-rock lithium operation. Located in Western Australia’s resource rich Pilbara region, the Pilgangoora Operation produces spodumene and tantalite concentrates. The significant scale and quality of the operation has attracted a consortium of high quality, global partners including Ganfeng Lithium, General Lithium, POSCO, and Yibin Tianyi.

Ganfeng Lithium owns a number of facilities which make it one of the world’s largest lithium chemical processors with comprehensive lithium extraction technology.

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