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Originally posted by Acgm:
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“There is no off take agreement” - by strict interpretation at the moment you’re correct. But what does it mean in the investor presentation when it says ... “CATL has indicated its willingness to provide commercial support to the Company by purchasing Pilbara Minerals’ spodumene concentrate product which may become available under its existing offtake agreements or otherwise ... Subject to mutual commercial agreement and parties entering into an offtake agreement”? Sounds to me like CATL are getting into the direct offtake market with PLS. What we don’t yet know is by what arrangement and how much. PLS is currently basically sold out of spod through to stage 2 ... does this mean CATL are keen to help fund the further expansion to stage 3? If that is the case, what does it mean for their remaining interest in AVZ.
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I am guessing that CATL are wanting to keep their options open. One day they will be wanting a reliable source of lithium. I would expect they have AVZ in their sights, however they would be a little unsure as to when AVZ will start producing. I would expect they will be wanting to get their foot in the door so to speak with other lithium suppliers. This will ensure that they will be able to meet their contracts.
