Pilbara Minerals (ASX:PLS) has solidified its position in the global battery supply chain by entering into a binding, multi-year offtake agreement with Chinese industrial giant Canmax Technologies.
Commencing in 2026, the deal involves the supply of 150,000 tonnes per annum of spodumene concentrate from the Pilgangoora Operation through to mid-2028, with Pilbara Minerals holding an option to extend the term by another year.
The agreement is notably de-risked by a US$1,000/t price floor, protecting the company from market downturns while maintaining full exposure to price spikes.
Furthermore, the partnership includes a US$100 million unsecured, interest-free prepayment from Canmax, providing Pilbara Minerals with a significant liquidity boost.
CEO Dale Henderson noted that the deal underscores the high quality of their product and the strength of their ongoing relationship with Canmax as a leader in lithium-ion battery materials.
At the time of reporting, Pilbara Minerals' share price was $4.23.