Ganfeng Lithium Group Co., Ltd. signed a cooperation agreement (contract) with Pilbara Minerals Limited in Australia. Both parties will contribute 50% capital to carry out a feasibility study of a lithium chemical plant project. Also, both parties will have an option to jointly approve to progress the final investment decision and establish a joint venture based on the feasibility study results.

Main contents of the contract: The Company and Pilbara will contribute 50% capital to carry out a feasibility study of a lithium chemical plant project. Each party should provide technical support and assistance related to the feasibility study, and jointly manage the feasibility study. Both parties will have an option to jointly approve to progress the final investment decision and establish a joint venture based on the feasibility study results.

If both parties approve the final investment decision, the Company and Pilbara will each hold 50% equity interest in the joint venture (without introducing third-party investors), with one party having the right to appoint the CEO of the joint venture and another having the right to appoint the CFO. Pilbara will sign an offtake agreement with the joint venture to supply 300,000 tons of spodumene concentrate annually. The term of offtake agreement is 15 years.

If the final investment decision is not approved, Pilbara will supply an additional 100,000 tons of spodumene concentrate to the Company annually from 2027 to 2030 under existing offtake agreement. Both parties will also agree a release from any offtake obligations arising from the mooted stage 2 Pilgangoora expansion.