Piedmont Lithium has made its first commercial shipment of spodumene concentrate produced by North American Lithium (NAL).
NAL is a wholly owned by Sayona Quebec, a joint venture between Piedmont (25%) and Sayona Mining (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 with the JV to purchase the greater of 113,000 metric tons per year or 50% of spodumene concentrate production at a ceiling price of $900 per metric ton 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.
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. The shipment is 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. “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 Phillips. “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.”