Some old news that the market is catching up with. I've posted only part of the article.

High Voltage: Nickel down in dumps, but PLS throws lithium narrative a bone

https://www.msn.com/en-au/money/markets/high-voltage-nickel-down-in-dumps-but-pls-throws-lithium-narrative-a-bone/ar-AA1n76Tv?ocid=mailsignout&pc=U591&cvid=f956d28fd832485da18edb08591ae1a6&ei=22

Meanwhile, Pilbara Minerals (ASXLS) has gone and done something interesting this week, announcing it’s signed a new deal that could almost triple its sales to China’s Ganfeng Lithium.

Per *‘s Josh Chiat:

Pilbara Minerals has shown China remains hungry for lithium raw materials despite cratering spodumene prices that could put rival operators on their knees.

Pilbara Minerals says it will sell up to 310,000tpa of spodumene concentrate to China’s Ganfeng Lithium from 2024-2026 under a long term supply agreement on top of the 160,000tpa it supplies annually as per a deal written up in 2017.

Pegged to market pricing, which is down around 80% in the past year, PLS will supply another 150,000t in 2024 and optionally 100,000t or 150,000t extra in each of 2025 and 2026.

It comes with PLS expecting to ramp up from a 580,000tpa capacity last year to 680,000tpa later this year and 1Mtpa by September 2025 at its Pilgangoora mine in the Pilbara.

PLS MD Dale Henderson told investors the demand profile for its concentrate from the EV battery supply chain remains strong.

“This increased supply with Ganfeng builds on our established partnership as we work together to further extend our position in the growing market for lithium products,” said Henderson.

“This 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 said, adding:

“The long-term outlook for the industry remains incredibly exciting. Both Ganfeng and Pilbara Minerals remain focused on extending our respective positions as major, low-cost producers in the burgeoning lithium market.”

PLS is expected to make a call this quarter on a partnering process on a downstream processing initiative incorporating 300,000t of concentrate from its expanded 1Mtpa project.