Pilbara Minerals Inks New Lithium Offtake with Chinese Company

Pilbara Minerals Inks New Lithium Offtake with Chinese Company

Under the five year deal, the Perth-based miner will provide up to 75,000 tonnes of spodumene concentrate per year to Chinese chemical and battery supplier Yibin Tianyi.

Shares of Australia’s Pilbara Minerals (ASX:PLS) jumped more than 20 percent after it secured a new offtake agreement for its Pilgangoora lithium-tantalum project in Western Australia.

Under the five year deal, announced on Wednesday (March 25), the Perth-based miner will provide up to 75,000 tonnes of spodumene concentrate per year to Chinese chemical and battery supplier Yibin Tianyi, with 60,000 tonnes to be supplied initially in 2020.

The Chinese company is currently constructing a lithium chemical plant in Sichuan with an initial production capacity of up to 25,000 tonnes per year of lithium chemicals; production is expected to start in June. By 2022, Yibin Tianyi is aiming to scale up production to 100,000 tonnes per year, which will make it one of the biggest lithium chemical suppliers in China.

Contemporary Amperex Technology (CATL), the world’s largest lithium-ion battery maker and a major Pilbara shareholder, holds a 15 percent stake in Yibin Tianyi.

CATL, which has three battery manufacturing facilities in China, has relationships with electric vehicle makers including Toyota (NYSE:TM), BMW (OTC Pink:BYMOF,ETR:BMW), Volkswagen (OTC Pink:VLKAF,FWB:VOW) and Honda (NYSE:HMC).

“Given Yibin Tianyi’s position as a key lithium chemical supplier to our largest shareholder CATL, our new partnership will further integrate Pilbara Minerals within the supply chain of the world’s largest electric vehicle battery manufacturer,” Pilbara Minerals Managing Director Ken Brinsden said.

“This will allow us to capture value from the future growth in the electric vehicle market while also supporting Yibin Tianyi’s growth ambitions to become one of the biggest lithium chemical suppliers in China,” he continued in Wednesday’s press release.

Sichuan-based Yibin Tianyi already received the first shipment of 20,000 tonnes of spodumene in March and a second shipment is targeted for April or early May, following a regular schedule thereafter.

Aside from Yibin Tianyi, Pilbara Minerals has offtake agreements in place with Chinese companies Ganfeng (OTC Pink:GNENF,SZSE:002460), General Lithium and automaker Great Wall Motor (OTC Pink:GWLLF,HKEX:2333), as well as with South Korea’s POSCO (NYSE:PKX).

Commenting on the impact of the coronavirus outbreak on its business, Pilbara Minerals said it has not experienced any material impact to its Pilgangoora operations as a direct result of the COVID-19 situation; however, it is taking steps to safeguard employees at its operations.

“Demand in the near term is likely to be tempered with end-use demand expected to remain soft in response to COVID-19,” it said in its press release. “At this stage, the company anticipates that shipped tonnes for the March 2020 quarter will be consistent with the lower end of previously announced guidance of 35,000 to 50,000 tonnes.”

In the current market conditions, Pilbara is continuing with its moderate production strategy at Pilgangoora to match output with customer demand.

On Wednesday, shares of Pilbara Minerals were trading at AU$0.16.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Galaxy Resources Limited Announcement

Galaxy Resources Limited (ASX: GXY) ( Company ) advises that the following announcements have been made to the Australian Securities Exchange which appears on the Company’s platform (ASX):

  • Appendix 2A
  • Appendix 3G

The announcements can be viewed at:

Keep reading... Show less

Lake Resources NL Quarterly Activities Report

Brisbane, Australia (ABN Newswire) – Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF) is a lithium developer utilising clean, direct extraction technology for the development of sustainable, high purity lithium products from its flagship Kachi Project (4.4mt LCE resource), as well as three other lithium brine projects in Argentina. No mining is involved in the brine processing.

The projects are in a prime location within the Lithium Triangle, where 40% of the world’s lithium is produced at the lowest cost. Lake owns over 220,000 hectares (0.5 million acres) of leases, including one hard rock project, alongside all 5 major lithium producers.

This efficient, disruptive direct lithium extraction method (DLE) from our technology partner, Lilac Solutions, will enable Lake Resources to be an efficient, responsiblysourced, environmentally friendly and cost competitive supplier of high-purity lithium carbonate.

Keep reading... Show less

Galan Lithium Limited Reports Quarterly Activities for the Period Ended 31 March 2021

The Board of Galan Lithium Limited (“Galan” or “the Company”) is pleased to provide this Quarterly Activities Report for the quarter ended 31 March 2021 and thereafter. The main focus for the quarter was the completion of the laboratory test work for its low carbon footprint brine evaporation process at its flagship Hombre Muerto West (“HMW”) project located in the South American Lithium Triangle in Catamarca, Argentina.


Keep reading... Show less

Piedmont Lithium March 2021 Quarterly Report

Piedmont Lithium Limited (ASX: PLL; NASDAQ: PLL) (“Piedmont” or “Company”) is pleased to present its March 2021 quarterly report.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210430005102/en/

Keep reading... Show less

Sayona Mining Ltd Quarterly Activities Report

Brisbane, Australia (ABN Newswire) – Emerging lithium miner Sayona Mining Limited (ASX:SYA) (FRA:DML) (OTCMKTS:DMNXF) released today its activities report for the March quarter 2021, highlighting further advances at its lithium projects in Quebec, Canada together with gold exploration in Western Australia.

Quarter Highlights

– Strategic partnership announced with leading US lithium corporation, Piedmont Lithium Limited, to invest up to US$12 million (AUD$15.5m) in Sayona Mining, together with offtake agreement

Keep reading... Show less

Top News

Related News