China’s Canmax signs two-year offtake deal with PLS

Shenzhen Stock Exchange-listed Canmax Technologies has signed a new two-year spodumene offtake agreement with Australian lithium producer PLS, guaranteeing a US$1000-per-tonne floor price for 6% lithium-oxide concentrate.

Canmax, which describes itself as the world’s leading global lithium battery material manufacturer, is making a US$100 million interest-free prepayment to PLS for up to 150,000 tonnes per annum of spodumene concentrate under the deal.

Canmax, founded in 1997 and Shenzhen-listed since 2014, was named among China’s top 500 manufacturers in 2023. It produces lithium battery materials through subsidiary Yibin Tianyi Lithium Industry Science & Technology Co (Tyeeli).

PLS said the supply deal could be extended for a year at its discretion. It said the minimum price for SC6 concentrate from its Pilgangoora operation in Western Australia would protect it against price falls while maintaining pricing upside.

“This agreement builds on our established relationship with Canmax and reflects both the quality and consistency of Pilgangoora’s spodumene and PLS’ proven capability as a reliable, large-scale operator,” PLS CEO Dale Henderson said.

“The US$100 million interest-free prepayment and floor price structure demonstrate strong commercial confidence in our product and performance, while preserving full exposure to price upside.

“The agreement strengthens our near-term liquidity and preserves operational flexibility through optional volumes, supporting disciplined production and sales decisions as lithium market fundamentals continue to improve.

“Deepening our partnership with Canmax further diversifies our customer base and reinforces PLS’ position as a leading, reliable supplier at scale to the lithium materials market.”