Pilbara Minerals develops digital sales and marketing platform for battery materials
WA lithium company Pilbara Minerals (ASX:PLS) has delivered a new trading and sales platform for its Pilgangoora project’s spodumene concentrate that goes live in coming months.
Pilbara Minerals said the digital platform known as the Battery Material Exchange is a key development for the battery materials market, as it provides a more efficient and sophisticated sales channel for the company.
The platform is designed also to generate revenue growth and was developed with technology company GLX Digital, a Perth-based company that specialises in digital trading solutions.
“Creating a digital marketing and sales platform represents a logical evolution for the industry and we are pleased to be working with GLX Digital to lead the industry,” managing director and chief executive, Ken Brinsden, said.
The digital platform facilitates transactions for the company’s Pilgangoora concentrate product by a range of screen-trading methods including auctions, tenders, and bilateral sales.
Cargoes offered for sale on the platform will have a defined delivery timeframe and in the case of an auction sale, multiple potential buyers will be able to bid on a cargo.
The company said it will first trial the digital platform by using unallocated or available spodumene concentrate product, including future production capacity from its recently-acquired Altura project.
Pilbara Minerals said it has yet to put a definitive date on when the digital platform will begin operating, suffice to say the first sales will happen in the next few months.
Standard company terms and conditions will apply to each sale, inclusive of letter of credit arrangements.
The trading platform will operate alongside the company’s existing and future offtake agreements and will initially be used to sell unallocated spodumene concentrate.
The company has witnessed a material increase in new potential credible buyers of its spodumene concentrate, with several chemical producers entering the market for the first time.
Pilbara Minerals added that additional products may be added to the Battery Materials Exchange platform in the future, possibly different grades of spodumene, or value-added lithium products for the battery materials market.
“With significant growth in the battery raw materials supply chain now expected, the introduction of our Battery Material Exchange trading platform should position Pilbara Minerals well to maximise its participation,” said Brinsden.
The Pilgangoora project in WA’s Pilbara region produces spodumene, a forerunner of lithium which has applications in lithium-ion batteries, and tantalite concentrate.
The company solidified its position in the lithium market with its recent takeover of Altura Mining’s (ASX:AJM) eponymous lithium project adjacent to Pilgangoora for $201m.
The company will maintain contact with its customers over the coming months while the new digital platform is put through its paces ahead of its launch.
Potential customers interested in participating in the company’s new sales and marketing platform can register with Pilbara Minerals’ sales team.
Perth-based GLX Digital has developed a digital trade platform for the natural gas sector that has been in operation for five years in multiple jurisdictions.
Users and market participants in the Battery Material Exchange can retain their anonymity and its security management system is certified to ISO 27001 best practice standards.