- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
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.
The Beginner’s Guide to Investing in Gold (Australia Edition)
Ready to invest in gold? Our beginner's guide makes it simple to get started.
Download your investing guide today.
Learn About Exciting Investing Opportunities in the Gold Sector
Your Newsletter Preferences
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.
Priscila is originally from Buenos Aires, Argentina, where she earned a BA in Communications at Universidad de San Andres. She moved to Vancouver for the first time in 2010 and fell in love with the city. A few years after she went to London, UK, to study a MA in Journalism at Kingston University and came back in 2016. She enjoys reading, drinking coffee and travelling.
Learn about our editorial policies.