Pilbara Minerals secures another offtake deal

Lithium miner Pilbara Minerals has notched a new offtake agreement with a Chinese buyer for spodumene concentrate from its flagship Pilgangoora operation.

ASX-listed Pilbara reached the deal with lithium chemical company Sichuan Yahua Industrial Group to supply up to 400,000 tonnes of spodumene concentrate over three years.

It marks the third deal the Pilbara lithium producer has reached with Chinese buyers, following its agreement with Chengxin and Ganfeng.

Managing director Dale Henderson said the offtake agreement built on an existing partnership between the companies.

“The agreement enables Yahua to further expand its supply chain commitment with key global battery customers and builds-out Pilbara Minerals medium-term sales profile while preserving long-term optionality as we assess downstream opportunities in line with our growth strategy,” he said.

“We are pleased to formalise this key relationship and support our shared objective to grow our respective positions in the lithium battery materials supply chain.”

Pilbara’s share price closed up 4.24 per cent to $4.17 per cent.