Piedmont Lithium Makes First Commercial Shipment of Spodumene Concentrate, Canada
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Piedmont Lithium has made its first commercial shipment of spodumene concentrate (SC) produced by North American Lithium Mine (NAL). The mine is wholly owned by Sayona Quebec, a joint venture between Piedmont (25 percent) and Sayona Mining (75 percent). NAL made the initial 20,500 metric ton shipment of spodumene concentrate via a trading company to international parties.
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.
“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,” said Keith Phillips, president and CEO of Piedmont.
“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,” added Phillips.
Piedmont owns a 12 percent equity interest in Sayona Mining and holds an offtake agreement with the JV to purchase the greater of 113,000 metric tons per year or 50 percent of SC production at a ceiling price of $900 per metric ton (SC-6.0 percent) on a life-of-mine basis. 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 their 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.
Piedmont Lithium 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. Its goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets where they hold an economic interest. Their projects include Its wholly-owned Carolina Lithium and Tennessee Lithium projects in the United States and partnerships in Quebec with Sayona Mining and in Ghana with Atlantic Lithium. These geographically diversified operations will enable Piedmont to play a pivotal role in supporting America’s move toward decarbonization and the electrification of transportation and energy storage.
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