News: GXY China's Yahua extends lithium offtake deal with Galaxy Resources

BEIJING, July 11 (Reuters) -

• Sichuan Yahua Industrial Group 002497.SZ said late on Friday it had extended an agreement to buy lithium concentrate from Australia-listed Galaxy Resources (GXY) by three years to the end of 2025.
• The Chinese company said in a statement to the Shenzhen Stock Exchange the extension would ensure supply of raw materials for its production of lithium chemicals, which are used in batteries for electric vehicles.
• The original offtake agreement between Yahua and Galaxy, which operates the Mt Cattlin spodumene mine in Western Australia, covered five years from the start of 2018 to the end of 2022.
• Galaxy is to supply Yahua with no less than 45,000 tonnes of concentrate in 2020 and no less than 120,000 tonnes annually from 2021-25, according to the filing, which did not put a value on the deal
• Galaxy did not immediately respond to a request for comment outside normal business hours.