Ann: Pilbara Minerals launches digital sales platform, page-97

Australia's Pilbara to launch digital lithium platform

Published date: 19 March 2021
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Leading Australian lithium producer Pilbara Minerals is launching a digital sales and trading platform to sell unallocated production from its Pilgangoora mining and processing operation in Western Australia, driven by renewed demand in the global lithium supply chain. The platform will subsequently include downstream lithium chemical products.
The Battery Materials Exchange is designed by Australian software company GLX Digital, which created a similar platform for the natural gas industry a few years earlier, Pilbara said.
The platform will undergo trials using lithium concentrate (spodumene) not contracted under offtake agreements and will include unallocated future production from the 220,000 t/yr capacity Altura Mining operation that it acquired from administration last year. The Altura Mining operation is in care and maintenance mode.
Pilbara announced earlier this month that it would increase the capacity of its 330,000 t/yr Pilgangoora operation (stage one) by 30,000-50,000 t/yr through a A$22mn ($17mn) improvement works programme. This is linked to increased offtake from its newest offtake partner, China's Yibin Tianyi.
It is anticipated that existing customers, beyond their committed offtake tonnage, and new customers will use the platform that will operate in conjunction with the company's existing and future offtake agreements. The platform is intended to facilitate "discreet" sales of spodumene concentrate by either auction (screen trading), tender process or bilateral sales agreements.
In the case of a sale by auction, the platform will enable multiple potential buyers to anonymously bid on a concentrate cargo. The successful bidder, remaining anonymous, will have the cargo loaded on a vessel in accordance with the final auction price and terms and conditions of the sale.
Pilbara Minerals has recently seen an increase in new credible buyers for its existing and emerging concentrate supply from new downstream chemical producers and existing producers who are expanding their output.
The Perth-based company, which has stage one and two offtake agreements with China's Ganfeng Lithium, General Lithium, Great Wall Motors and Yibin Tianyi, as well as South Korea's Posco, has indicated that different concentrate grades and value-added products such as lithium carbonate and lithium hydroxide could be added to the platform as its vertical integration strategy unfolds.
It described the platform as a key development in the battery materials market and a logical evolution through a more sophisticated and efficient sales channel to support growing demand linked to vehicle electrification and energy storage.
The first sale is expected to take place "over the coming months" after formal establishment of the exchange and engagement with lithium industry buyers.
By Angus Macmillan​