Pilbara Minerals signs spodumene supply deal with China's Sichuan Yahua (updated)

LG Chem

11/03/2024 23:07

(Adds details on lithium offtake in paragraphs 2-6)
       March 12 (Reuters) - Lithium miner Pilbara Minerals
 PLS.AX  said on Tuesday it has signed an agreement with Sichuan
Yahua Industrial Group  002497.SZ  for the supply of spodumene
concentrate from its Pilgangoora operation in Western Australia.
    Spodumene is a mineral with a high concentration of lithium,
a key component in the production of batteries for electric
vehicles.
    Pilbara has agreed to supply the mineral at market price in
an agreement signed for three years, the company said.    
    The Yahua Industrial Group has strong connections across the
lithium supply chain with key customers, including Tesla
 TSLA.O , LG Energy Solutions, LG Chem  051910.KS , and
Contemporary Amperex Technology 300750.SZ .
    Pilbara Minerals plans to supply between 20 thousand tonnes
(kt) and 80 kt of spodumene concentrate to Yahua in 2024, it
said, adding that it would eventually increase its supply
between 100 kt and 160 kt in 2025. 
    "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," Pilbara's Managing Director
and CEO Dale Henderson said.  

 (Reporting by Roshan Thomas in Bengaluru; Editing by Shounak
Dasgupta and Shweta Agarwal)
 ((Roshan.Thomas@thomsonreuters.com))