Lithium producers, Sayona Mining (ASX:SYA) and Piedmont Lithium (ASX:PLL) have restarted commercial spodumene concentrate production at jointly owned North American Lithium (NAL) Project in Quebec, Canada
The companies report the $80 million restart of NAL was completed on time and within budget, and notes it is the ‘exclusive’ major source of new spodumene production expected in North America in the next 2 years.
Sayona notes it is targeting 226,000 metric tons per year of annual production with first commercial shipments expected in Q3 2023. The company is also targeting 4 shipments from NAL totalling up to 120,000 metric tons by the end of 2023, which are expected to supply key battery and electric vehicle manufacturers including LG Chem (KRX:051910) and Tesla (NASDAQ:TSLA).
Commenting on the restart, Sayona Mining Managing Director, Brett Lynch, says: “Since announcing our restart intentions in 2021, our project team has maintained a forward-looking focus to improve lithium capture, achieve more consistent runtimes, and streamline operating costs from the past-producing operation.
Improvements were made as planned in our timeline and budget, and we are eager to see the impact the upgrades bring to both product quality and operational efficiency as we prepare for our first commercial shipments of spodumene concentrate expected in July of this year.”
“Improvements were made as planned in our timeline and budget, and we are eager to see the impact the upgrades bring to both product quality and operational efficiency…”
Further commenting, Piedmont Lithium President and Chief Executive Officer (CEO), Keith Phillips, says: “We applaud the work of the operating team in bringing the restart of NAL to fruition.
This marks an exciting milestone not only for Piedmont Lithium and Sayona Mining, but the North American market for which we are working to supply critical lithium resources.
NAL is positioned to be a key contributor to the electric vehicle and battery supply chains as demand for lithium continues to rapidly expand along with the electrification economies in both Canada and the US.”
NAL is one of three projects of Sayona Quebec, a joint venture (JV) which Sayona holds a 75% interest in with Piedmont holding the remaining 25%.
Sayona reports production at NAL is expected to be supported by the mineral resources of Sayona Quebec’s Abitibi Hub projects. Sayona Quebec also expects to provide an updated Definitive Feasibility Study (DFS) for NAL and its Authier Lithium Project.
Additionally, a new ‘large-scale’ and ‘extensive’ drill program is also planned for 2023 by NAL and Jourdan Resources (CVE:JOR) at NAL and the adjacent Vallée Lithium Project. The company says this drilling program will aim to define a mineral resource base capable of supplying more tons, and enhanced material quality to the NAL concentrator.
Sayona also reports a Prefeasibility Study (PFS) is currently underway to evaluate downstream production at NAL through the completion of the project’s lithium carbonate plant, which was partially constructed by former owners of the operation.
Results of the PFS are expected in the first half of 2023, and further evaluation of downstream production of lithium carbonate or lithium hydroxide in Quebec may follow the PFS.
Sayona Mining is a lithium producer with projects in Canada and Australia. In Quebec, Sayona’s assets comprise North American Lithium together with the Authier Lithium Project, and its emerging Tansim Lithium Project supported by a strategic partnership with Piedmont Lithium. In Western Australia, the company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium.
Piedmont Lithium is a multi-asset lithium producer focused on enabling the transition to a net zero world and the creation of a clean energy economy in North America.
Projects held by Piedmont include the Carolina and Tennessee Lithium projects in the US, along with partnerships in Quebec with Sayona, and Atlantic Lithium (ASX:ALL) in Ghana.
Images: iStock
