March 12 (Reuters) - Lithium miner Pilbara Minerals ( PILBF )

said on Tuesday it has signed an agreement with Sichuan

Yahua Industrial Group for the supply of spodumene

concentrate from its Pilgangoora operation in Western Australia.

Spodumene is a mineral with a high concentration of lithium,

a key component in the production of batteries for electric

vehicles.

Pilbara has agreed to supply the mineral at market price in

an agreement signed for three years, the company said.

The Yahua Industrial Group has strong connections across the

lithium supply chain with key customers, including Tesla

, LG Energy Solutions, LG Chem, and

Contemporary Amperex Technology.

Pilbara Minerals ( PILBF ) plans to supply between 20 thousand tonnes

(kt) and 80 kt of spodumene concentrate to Yahua in 2024, it

said, adding that it would eventually increase its supply

between 100 kt and 160 kt in 2025.

"The agreement enables Yahua to further expand its supply

chain commitments with key global battery customers and

builds-out Pilbara Minerals ( PILBF ) medium-term sales profile whilst

preserving long-term optionality," Pilbara's Managing Director

and CEO Dale Henderson said.