Pilbara announced on March 12 that it has successfully revised its existing offtake agreements with Ganfeng Lithium, Chengxin Lithium, and Yahua Group over 2024 - 2026. The details are as follows:
-2024
Ganfeng Lithium: Pilbara will provide an additional 150,000 tonnes of spodumene concentrate, bringing the total supply to 310,000 tonnes in 2024;
Chengxin Lithium: Pilbara will provide an additional 60,000 tonnes of spodumene concentrate, bringing the supply to 85,000 tonnes in 2024;
Yahua Group: Pilbara can choose to supply an additional 60,000 tonnes of spodumene concentrate, potentially bringing the supply to 20,000-80,000 tonnes in 2024.
-2025
Ganfeng Lithium: Pilbara will provide an additional 100,000 tonnes of spodumene concentrate (Pilbara can choose to increase the supply to 150,000 tonnes), bringing the total supply to 260,000-310,000 tonnes in 2025;
Chengxin Lithium: Pilbara will supply 150,000 tonnes of spodumene concentrate in 2025;
Yahua Group: Pilbara can choose to supply an additional 60,000 tonnes of spodumene concentrate, potentially bringing the supply to 100,000-160,000 tonnes by 2025.
-2026
Ganfeng Lithium: Pilbara will provide an additional 100,000 tonnes of spodumene concentrate (Pilbara can choose to increase the supply to 150,000 tonnes), bringing the total supply to 260,000-310000 tonnes in 2026;
Chengxin Lithium: Pilbara will supply 150,000 tonnes of spodumene concentrate in 2026;
Yahua Group: Pilbara can choose to supply an additional 60,000 tonnes of spodumene concentrate, potentially bringing the supply to 100,000-160,000 tonnes by 2026.
The total purchase volume of the above three companies will potentially be 415,000-475,000 tonnes in 2024, 510,000-620,000 tonnes in 2025, and 510,000-620,000 tonnes in 2026.
In addition to the aforementioned companies, Pilbara also has spodumene concentrate offtake agreements with Tianyi Lithium, Great Wall Motors, and Posco.
In 2023, Pilbara produced 631,100 tonnes of spodumene concentrate and sold 627,000 tonnes. During the downward cycle of lithium salt prices, Pilbara chose to bind with downstream players as much as possible. Pilbara was also the first Australian mining enterprise to change its pricing method from Q-1 to M+1, which helped ensure its sales while maximize the selling price of spodumene concentrate.
Written by Aggie Hu, huchenying@mysteel.com
