Adding a new page to its expanding business, Pilbara Minerals has emerged triumphant in developing and securing an upgraded off-take deal with Chengxin. The revised agreement spans a hearty schedule, encompassing sales of 85,000 tonnes in calendar 2024, followed by 150,000 tonnes in both 2025 and 2026, greatly expanding and prolonging the deal until 2026, the miner cheerily announced.
The sales to Chengxin, a key supplier to renowned companies such as Hyundai Motor, CATL, BYD and LG Chemical, will be conducted based on the prevailing market price, congruent with the existing agreement, the Australian miner revealed, brimming with optimism.
Not too long ago, in January to be exact, Pilbara Minerals, heralded as Australia’s largest independent lithium miner, had sealed a similar agreement with Ganfeng, the world’s third largest and China’s largest lithium compounds producer.
Ever probing ways to augment the value of its hard rock spodumene ore, the West Perth-based firm has set forth a bold strategy geared towards business expansion. As part of this bold initiative, the company is currently in the process of constructing a demonstration plant intended for the processing of lithium from Pilgangoora.
If powered by renewable energy, the innovative technology behind the plant could potentially slash carbon emissions by more than 80%, serving as a momentous step in the lithium battery materials production process, revolutionizing the way we think about sustainable business practices.
The plant marks a major milestone, as Pilbara Minerals anticipates being able to produce one million tonnes of spodumene concentrate next year, marking its territory as a leader in the industry, while remaining cognizant of environmental concerns.
Market response has been nothing short of enthusiastic, with shares of Pilbara Minerals enjoying a 5.6% surge in Sydney, closing at A$3.57. This surge has propelled the hard-rock lithium producer to an esteemed market capitalization of A$10.74 billion ($7bn).
