Piedmont Lithium announces first commercial shipments from North American Lithium.
Piedmont Lithium (“Piedmont” or the “Company,”) (Nasdaq: PLL; ASX: PLL), announced the first commercial shipment of spodumene concentrate (“SC”) produced by North American Lithium (“NAL”), which is wholly owned by Sayona Quebec, a joint venture (the “JV”) between Piedmont (25%) and Sayona Mining (ASX: SYA) (75%). NAL made the initial 20,500 metric ton shipment of spodumene concentrate via a trading company to international parties.
Piedmont owns a 12% equity interest in Sayona Mining and holds an offtake agreement (the “Offtake Agreement”) with the JV to purchase the greater of 113,000 metric tons per year or 50% of SC production at a ceiling price of $900 per metric ton (SC-6.0%) on a life-of-mine basis. As 2023 is the start-up year for NAL, the parties have agreed that Piedmont’s allocation this year will be the greater of 56,500 metric tons or 50% of 2023 SC production.
Sales by the JV to its customers are expected to support JV operating expenses, while sales under the Piedmont Offtake Agreement are planned to fund the Company’s broader strategic initiatives, including development of our projects in Tennessee, Ghana, and North Carolina.
Following this initial JV shipment, the parties have agreed that the next two shipments will be to Piedmont customers via the Offtake Agreement. Piedmont expects to deliver 15,000 metric tons to a major international trading company in August 2023; these tons are already produced and stocked at the port. A further 15,000 metric tons are planned for shipment in September-October to LG Chem as the initial component of the four-year, 200,000-metric-ton agreement announced in February 2023.
Keith Phillips, President and CEO of Piedmont, said the first set of shipments marks a pivotal period for the Company as it continues to transition from a developer to a lithium producer.
Keith Phillips, President and CEO of Piedmont, said:
For the last seven years, Piedmont Lithium has focused on developing a supply of crucial lithium resources, and we are excited to begin generating revenue and cash flow as we see our plans come to fruition.
“Our products will help our customers meet the requirements of the Inflation Reduction Act and, in turn, the growing demands of the U.S. electric vehicle and battery supply chains.”
About Piedmont Lithium
Piedmont Lithium (Nasdaq: PLL; ASX: PLL) is developing a world-class, multi-asset, integrated lithium business focused on enabling the transition to a net zero world and the creation of a clean energy economy in North America. Our goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets where we hold an economic interest.
Our projects include our Carolina Lithium and Tennessee Lithium projects in the United States and partnerships in Quebec with Sayona Mining (ASX: SYA) and in Ghana with Atlantic Lithium (AIM: ALL; ASX: A11). These geographically diversified operations will enable us to play a pivotal role in supporting America’s move toward energy independence and the electrification of transportation and energy storage. For more information, follow us on Twitter @PiedmontLithium and visit www.piedmontlithium.com.
Highlights:
- Inaugural shipment of 20,500 metric tons of spodumene concentrate by North American Lithium departed the Port of Quebec City on August 1, 2023
- Piedmont expects to ship approximately 56,500 metric tons in H2 2023 under its joint venture offtake agreement, including the first tons under the long-term supply agreement with LG Chem
Piedmont Lithium Announces First Commercial Shipments From North American Lithium, BELMONT, N.C., August 2, 2023