Piedmont Lithium has announced that the first shipment of 20,500 metric tonnes of spodumene concentrate produced at North American Lithium (NAL) has departed Quebec City.
NAL made the initial shipment to international parties through a trading company.
NAL is a joint venture between Piedmont and Sayona Mining.
Piedmont owns 12% of Sayona Mining and has an offtake agreement with the joint venture to acquire more than 113,000 metric tonnes per year or 50% of spodumene concentrate output at a life-of-mine ceiling price of $900 per metric tonne. As 2023 is NAL’s start-up year, the parties agreed that Piedmont would receive the greater 56,500 metric tonnes or 50% of 2023 spodumene concentrate output this year. Sales to customers by the joint venture are projected to finance joint venture operational expenditures, whilst sales under the Piedmont Offtake Agreement are expected to fund the Company’s larger strategic goals, such as developing projects in Tennessee, Ghana, and North Carolina.
Following the first shipment, the parties have agreed that the subsequent two shipments will be via the Offtake Agreement to Piedmont clients. Piedmont anticipates delivering 15,000 metric tonnes to a prominent international trading company in August 2023; these tonnes have already been manufactured and stockpiled at the port. A further 15,000 metric tonnes are scheduled to be sent to LG Chem in September-October as the first component of the four-year, 200,000-metric-ton agreement signed in February 2023.
Piedmont President and CEO Keith Phillips said the first shipment represents an essential milestone for the company as it transitions 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. 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,” Phillips stated.
