Yahua International and Core Lithium terminate spodumene offtake agreement

On May 12, Yahua International Investment and Development Co., Ltd., a wholly-owned subsidiary of Sichuan Yahua Industrial Group Co., Ltd., signed a "Settlement, Termination, and Recission Agreement" with Lithium Developments (Grants NT) Pty Ltd, a wholly-owned subsidiary of Core Lithium Ltd. This agreement terminates the previously established"Spodumene Offtake Agreement" and its supplementary agreements. The termination was due to the suspension of operations at Core Lithium's Finniss Lithium Project, making it unable to supply spodumene concentrate. As part of the settlement, Core Lithium has agreed to pay Yahua International a settlement fee of USD2 million.

The termination will have no impact on Yahua's lithium resource security. The company has established a diversified sourcing strategy combining self-operated and third-party lithium resources, ensuring a stable supply chain.

In terms of self-operated resources, the first and second phases of the Kamativi Lithium Project in Zimbabwe were fully completed in 2024, providing an annual processing capacity of 2.3 million tons of raw ore, with the processed products already being shipped back to China for production.

For third-party supplies, Yahua secures lithium resources primarily through its equity stake in the Sichuan Lijiagou Lithium Mine, which grants it priority supply rights. The company also signs long-term agreements to secure offtake rights from sources like Australia's Pilbara, Africa's DMCC, and Brazil's Atlas. These diverse lithium sources are sufficient to support the company's lithium salt production capacity.