PLS Group (formerly known as Pilbara Minerals) has signed a two-year offtake agreement with Canmax Technologies for spodumene concentrate supply.

Under the agreement terms, PLS will supply 150,000 tonnes per annum (tpa) of spodumene, starting from the 2026 calendar year, pending a $100m (A$141.35m) prepayment.

This arrangement can be extended for an additional year at the discretion of PLS, maintaining the annual supply volume.

The agreement sets a minimum price of $1,000/t (SC6 basis), offering protection against price drops while allowing for unlimited price increases.

It reflects the quality of the product from PLS' Pilgangoora operation in Australia.

The prepayment, which is interest-free and without restrictive conditions, is intended to be repaid through offsetting sales proceeds from the supplied concentrate.

PLS has ensured that it retains the option to adjust its supply volumes in response to changing market demands and customer needs.

The company plans to fulfil these commitments using its Pilgangoora operation facilities, either from its Pilgan Plant, its Ngungaju Plant, or both.

Canmax is a major player in the lithium-ion battery materials sector and is publicly traded on the Shenzhen Stock Exchange.

PLS managing director and CEO Dale Henderson said: “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.

“The $100m 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.”