Australian lithium miner Pilbara Minerals said Monday it has upgraded its offtake agreement with China’s Ganfeng Lithium Group, increasing short and medium-term spodumene concentrate deliveries, Kallanish reports.

The update to the existing agreement signed in 2017 covers the supply of up to 310,000 tonnes/year of spodumene concentrate over the next three years. The previous offtake was for 160,000 t/y from the company’s Pilgangoora Operation in Western Australia.

This year, Pilbara expects to supply Ganfeng an additional 150,000 t/y, followed by an extra 100,000 t/y in 2025 and 100,000 t/y in 2026. Deliveries in the latter two years could increase to 150,000 t/y each year, which would take the total annual supply to 310,000 t/y. All volumes will be sold based on the prevailing market price.

Ganfeng is one of the world’s leading lithium chemical converters. The giant has extensive capability in the production of battery-grade lithium products with over 20 years of industry experience and a rapidly expanding global footprint, notes Pilbara’s managing director Dale Henderson.

“This [supply] increase demonstrates the demand for Pilbara Minerals’ spodumene concentrate while preserving optionality for the company as we assess long-term downstream opportunities in-line with our growth strategy,” he adds. “The long-term outlook for the industry remains incredibly exciting.”

The companies are separately continuing a strategic partnership negotiation, seeking a conclusion by the end of March. The Chinese firm is the second-largest shareholder in the Australian firm with a roughly 5.74% stake.

Commenting on the new agreement, Ganfeng Lithium’s president and vice chairman, Wang Xiaoshen, said the offtake expansion marks another important step to further strengthen its “valued partnership” with Pilbara. “The increased supply also demonstrates our strong commitment to support the growth of our global customers through the creation of cost-competitive and high-quality lithium raw materials. We are looking forward to our future cooperation with Pilbara Minerals,” he adds.