Piedmont Lithium Lays Out Plan to Double Lithium Production (ASX:PLL)

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Shares for Piedmont Lithium Ltd [ASX:PLL] are up 2.3% at time of writing and trading at 67 cents a share after outlining its development plans for the year.

Piedmont plans to build two 30,000 metric tonnes per year (tpy) lithium hydroxide conversion plants in the US.

One plant will be located at their Carolina Lithium Project. The company is in the process of selecting a site for the second plant and expect to make a final decision in the second quarter of 2022.

If built, this would double their hydroxide production potential to 60,000 tpy.

Looking to become the US’s leading lithium hydroxide producer

The lithium miner has the ambitious plan of becoming the US’s leading lithium hydroxide producer.

To that end, they are advancing their Carolina Lithium Project. 100% owned by Piedmont, the project is in North Carolina, US.

In December, Piedmont published the project’s bankable feasibility study (BFS), which expects 30,000 tpy production of lithium hydroxide, 242,000 tpy of spodumene concentrate and quartz, feldspar, and mica as by-products.

The project is progressing towards a final investment decision and is going through the permitting, engineering, and financing processes.

Piedmont is also involved in projects in Quebec and Ghana. These will support the development of the second lithium hydroxide conversion plant.

Piedmont holds a 25% stake in subsidiary Sayona Quebec; it owns North American Lithium (NAL) in Quebec. The other 75% is owned by Sayona Mining Ltd [ASX:SYA]. Sayona plans to restart spodumene concentrate production at NAL and expects its first production to happen in the first six months of 2023.

Piedmont is also earning a 50% project interest in Atlantic Lithium’s spodumene projects in Ghana. It’s currently exploring the Ewoyaa Lithium Project and plans to complete a prefeasibility study in the first semester of 2022 with first production possible in 2024.

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Taking advantage of the coming lithium supply crunch

EV sales accelerated this year, with EV global market share increasing from 4.11% in 2020 to 8.57% in 2021.

With a lithium shortage on the horizon and more battery and car makers trying to secure supply, lithium hydroxide prices are up close to 300% year-on-year.

As Piedmont Lithium President and CEO Keith Phillips said, the timing couldn’t be better to be involved in lithium:

We are developing our assets at an opportune time with global sales of electric vehicles (EVs) having doubled in 2021 and large US battery plant investments being made by major automotive and battery companies. This electrification of the automotive market is a generational investment opportunity, and we uniquely well-positioned to capitalize on it.

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Selva Freigedo,
Editor, Money Morning

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About Selva Freigedo

Selva Freigedo is an analyst at Money Morning. She has a background in financial economics, but what makes Selva´s experiences different to many are the places she has lived and worked. Born in Argentina, she has also lived in Brazil, the US, Spain, and now Australia. She has seen up…

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