Pilbara Minerals signs 20-year power deal with Fortescue
Key points
- PLS signed a 20-year power purchase agreement with Fortescue to supply electricity to its Pilgangoora operation.
- The long-term deal is projected to lower operating costs by $15–20 per tonne while expanding renewable power capacity.
- Fortescue plans to supply a minimum of 325 GWh annually to support Pilbara Minerals' P2000 expansion model.
Pilbara Minerals (ASX:PLS) has executed a 20-year power purchase agreement with a subsidiary of Fortescue (ASX:FMG) to supply a minimum of 325 GWh of electricity per year to the Pilgangoora operation.
The company stated that the agreement is expected to lower unit operating costs by approximately $15–20 per tonne compared to its recently announced 10-year average P2000 forecast.
“This agreement further strengthens our low-cost position at Pilgangoora, improving our competitiveness and resilience through lithium market cycles,” said Pilbara Minerals Managing Director and CEO Dale Henderson.
The agreement requires approximately $150 million in capital investment for transmission connections and infrastructure upgrades phased across FY27 to FY29.
Following the announcement, the PLS share price was unchanged at $2.88.
The new transmission infrastructure will feature a capacity exceeding 100 MW to support the P2000 expansion project and future fleet electrification options.
Electricity supply under the agreement is targeted to commence during 2029 to meet growing demand at the Pilgangoora site.
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