Pilgangoora Operations Pty Ltd, a wholly owned subsidiary of Pilbara Minerals Ltd, is developing the Pilgangoora lithium-tantalum project in Western Australia, to develop resources used in lithium battery storage. In its first investment in a WA mining project of this type, CEFC supported the project through a US$15 million cornerstone commitment (around AU$20 million) to a US$100 million senior secured bond issuance by Pilgangoora Operations Pty Ltd.
Demand for lithium is expected to grow, driven by the predicted uptake of electric vehicles that use lithium ion batteries, and by the growth in energy storage solutions requiring lithium concentrate supplies. Concentrate will be exported from Port Hedland, predominantly to China under existing off-take agreements for processing lithium carbonate and lithium hydroxide for a wide range of lithium products.