Piedmont Lithium (ASX:PLL) has shipped its first commercial shipment of 20,500 metric tonnes of spodumene concentrate produced by North American Lithium.
North American Lithium is a wholly owned subsidiary of Sayona Quebec, a joint venture (JV) between Piedmont Lithium, owning 25%, and Sayona Mining (ASX:SYA), which owns the remaining 75%.
Piedmont, which has a $1.54 billion market capitalisation, holds an offtake agreement with the JV to purchase the greater of 113,000 metric tonnes per year, or 50% of spodumene concentrate production, at a ceiling price of $900 per metric tonne on a life-of-mine basis.
All parties have agreed that Piedmont’s allocation this year will be the greater of about 56,500 metric tonnes, or 50% of the 2023 spodumene concentrate production.
Piedmont notes that sales under the agreement are planned to fund the company’s broader strategic initiatives, including the development of the Tennessee, Ghana, and North Carolina projects.
The next 2 spodumene concentrate shipments will be to Piedmont’s customers through the offtake agreement, while the company expects to deliver 15,000 metric tonnes to a ‘major’ international trading company this month.
An additional 15,000 metric tonnes are planned for shipment between September and October 2023 to LG Chem as the initial component of a 4-year 200,000 metric tonne agreement, which was announced in February 2023.
Commenting on the shipments, Piedmont Lithium President and Chief Executive Officer (CEO) Keith Phillips says: “For the last 7 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.
“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 US electric vehicle and battery supply chains.”
Piedmont Lithium is an ASX-listed lithium-focused company. The company’s portfolio of assets includes the Carolina and Tennessee Lithium projects in the US and partnerships in Quebec and Ghana.
Write to Aaliyah Rogan at Mining.com.au
Images: Piedmont Lithium Inc