Piedmont Lithium Plans Development Funding for Ewoyaa Project, Ghana
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Piedmont Lithium said the company will increase its stake in Atlantic Lithium Limited’s Ewoyaa Lithium Project as part of a staged investment agreement to earn a 50 percent equity interest in Atlantic Lithium’s Ghanaian lithium portfolio.
Under the terms of the project agreement with Atlantic Lithium, Piedmont has exercised its option to acquire a 22.5 percent interest in Ewoyaa, having funded the completion of the project’s definitive feasibility study (DFS). Piedmont also plans to provide a further $70 million toward Ewoyaa development capital to acquire an additional 27.5 percent interest in the project. Piedmont expects to share the remaining project capital costs equally with Atlantic Lithium for a total Piedmont commitment of approximately $128 million toward the total estimated $185 million project capital costs.
Piedmont President and CEO Keith Phillips said the funding to support Ewoyaa furthers the company’s strategy to supply crucial lithium resources to U.S. electric vehicle and battery manufacturers.
“We are pleased to help advance the progression of Ewoyaa as a key part of Piedmont Lithium’s global portfolio and the expected feedstock for our planned lithium hydroxide conversion facility in Tennessee,” said Phillips.
“Our partners at Atlantic Lithium have made tremendous progress with positive project economics recently published in a definitive feasibility study and minerals lease discussions that are progressing with Ghana’s Minerals Commission. We look forward to continuing our work with Atlantic Lithium to support the project toward first production, currently targeted for 2025,” added Phillips.
The company’s additional funding remains subject to the receipt of final government and regulatory approvals for the project. Piedmont expects to be able to fund its contributions toward project development through proceeds from the sale of lithium concentrate from its offtake agreement with North American Lithium.
The company is entitled to purchase 50 percent of lithium concentrate production at Ewoyaa on a market-based pricing mechanism for the life of the mine. This offtake is being planned as feedstock for the company’s proposed, 30,000-metric-ton-per-year lithium hydroxide conversion facility in Tennessee.
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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