(Yicai) Feb. 8 -- Chengxin Lithium Group, a major Chinese lithium salt processor, said it has inked a deal to buy 385,000 tons of spodumene concentrate from a unit of Australian lithium miner Pilbara Minerals.

Chengxin Lithium will buy 85 kilotons of spodumene, a mineral used in lithium battery making process, from Pilbara's subsidiary this year, the Shenzhen-based firm announced late yesterday. It will purchase 150 kt next year and the same amount in 2026, it noted.

The deal will help Chengxin Lithium expand its raw materials supply channels and lock in the supply of high-quality raw materials, it said. The price will be decided based on a pricing formula agreed with Pilbara's unit, it added, without disclosing further details.

On Jan. 15, Ganfeng Lithium Group also penned a deal with Pilbara to nearly double its spodumene offtake. The Chinese lithium giant will raise its purchase to 310 kt this year from 160 kt previously and buy 260 to 310 kt in 2025 and 2026, the West Perth-based firm said on the same day.

Chengxin has lithium mine projects in China, Zimbabwe, and Argentina, and lithium salt processing plants in western China. The company expects to complete its lithium salt processing plant in Indonesia in the first half of this year. 

Chengxin's overseas lithium salt products clients include LG Chem, SK On, and Posco Chemical, according to its website. The firm also inked a four-year lithium hydroxide supply deal with South Korean carmaker Hyundai Motor last month.

Shares of Chengxin Lithium [SHE: 002240] ended little changed at CNY20.22 (USD2.97) each in Shenzhen today, after soaring by as much as 5.7 percent in the morning trading session.

Editor: Martin Kadiev