UPDATE 1-Pilbara Minerals signs spodumene supply deal with China's Sichuan Yahua

(Adds details on lithium offtake in paragraphs 2-6)

March 12 (Reuters) - Lithium miner Pilbara Minerals 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 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 medium-term sales profile whilst preserving long-term optionality," Pilbara's Managing Director and CEO Dale Henderson said. (Reporting by Roshan Thomas in Bengaluru; Editing by Shounak Dasgupta and Shweta Agarwal)