- US-primarily based Piedmont Lithium to commit $US12m ($15.5m) in Canada-based lithium explorer Sayona Mining
- Offtake deal for 60,000 tonnes for each calendar year of Quebec spodumene focus for Piedmont’s US challenge in North Carolina
- Offer generates lithium hub in Quebec’s Abitibi region to supply North American and Global battery marketplaces
Piedmont Lithium’s (ASX:PLL) acquisition of a strategic stake in Canada-centered lithium explorer Sayona Mining (ASX:SYA) highlights the value to US-centered EV makers of owning a comparatively small source chain and accessibility to nearby supply sources.
Outgoing US President Donald Trump signed an Govt Order in Oct that sought to decrease US dependence on imported supplies of 35 vital minerals like antimony, cobalt, graphite, lithium and tantalum.
Piedmont Lithium secured in September a significant supply deal with Tesla for lithium hydroxide creation from its North Carolina facility which is focusing on creation of 22,700 tonnes for each year.
Tesla, as an American enterprise, puts a powerful significance on obtaining a US-dependent offer chain for many factors that involve protection of provide, expense rewards, and closer inventory administration, Piedmont Lithium chief govt and president, Keith Phillips explained to Stockhead at the time.
“I think they [Tesla] like to have their suppliers shut to household. Which is real for all the vehicle firms we talked to as effectively,” said Phillips, speaking in September when the company received a offer deal with Tesla.
“We discover from chatting to the Germans, who are heading to construct autos in the US, that the thought of owning a US source of raw materials would be a great thing also.
Strategic stake to speedy-monitor Sayona Mining’s Canadian tasks
Piedmont Lithium is to speed up the development of Sayona Mining’s lithium jobs by using a 19.9 for each cent stake in the ASX organization, and a 25 per cent stake in Sayona’s Quebec subsidiary.
“Quebec is destined to turn out to be 1 of the world’s key lithium hydroxide creation centres given its considerable mineral methods, reduced price, sustainable hydroelectric electric power, proximity to significant US and European EV marketplaces, and professional-electricification stance of provincial leaders,” Phillips claimed.
The US lithium firm will choose an first 9.9 for each cent equity stake in Sayona Mining, adopted by a further more 10 for every cent stake on conversion of two unsecured convertible notes for $US7m.
Piedmont Lithium will acquire the suitable to appoint one particular Sayona Mining board member when its stake in the business reaches 9.9 for each cent.
“Piedmont is building a environment-course spodumene-to-hydroxide organization in North Carolina, and we are now very delighted to be partnering with Sayona to progress a identical organization in Quebec,” mentioned Phillips.
The US lithium company will invest $US5m money for a 25 per cent stake in Sayona Quebec, a subsidiary firm for its flagship Authier lithium undertaking.
Piedmont Lithium deal consists of off-consider deal
Sayona has agreed to supply 60,000 tonnes for each year of spodumene focus from its Quebec task as a feedstock to Piedmont Lithium’s processing plant in North Carolina, commencing shipping and delivery concerning July 2023 and July 2024.
The feedstock quantity is for Sayona Quebec’s everyday living-of-mine functions and is based on industry pricing with a minimum amount cost of $US500 per tonne and a highest cost of $US900 for every tonne on a delivered foundation to Piedmont Lithium’s proposed lithium hydroxide plant in North Carolina.
“Sayona’s assets are favourably found in the Val-d’Or location of central Quebec, home to main mining functions and proximate to initially-class infrastructure,” said Phillips.
Sayona Mining handling director Brett Lynch said the partnership with Piedmont Lithium will advance the growth plans of both equally companies.
“Piedmont has shown tremendous vision in making a base in North Carolina, a centre of lithium hydroxide creation in the United States, and has secured considerable provide agreements with leading EV makers,” he claimed.
Piedmont Lithium’s share rate dipped 3 for each cent to 46c for every share right after the offer was declared Monday, while Sayona Mining’s share selling price went up 57 for each cent to 2.2c for each share.
American Uncommon Earths, Ioneer building US assignments
There are a selection of other ASX battery metals businesses with jobs in North America, such as American Unusual Earths and Ioneer.
American Exceptional Earths (ASX:ARR) is accelerating the development and development of its La Paz project in Arizona, and its Laramie challenge in the US point out of Wyoming.
“Rare earth things keep on being a important US strategic source, which via its domestic growth is developed to deliver input for US-primarily based processing,” the organization mentioned in its 2020 yearly report.
Ioneer (ASX:INR) just lately fully commited to its goal of having its Rhyolite Ridge lithium-boron challenge in Nevada permitted and ready for development as early as the second quarter of 2021.