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North American Lithium, a joint venture between Piedmont Lithium (25%) and Sayona Mining (75%), has shipped 20,500 metric tons of spodumene concentrate to international parties \u2013 its first commercial shipment.<\/p>\n\n\n\n
Piedmont owns a 12% equity interest in Sayona Mining and holds an offtake agreement with the joint venture to purchase the greater of 113,000 metric tons per year or 50% of spodumene concentrate production at a ceiling price of $900\/metric ton (SC-6.0%) on a life-of-mine basis. <\/p>\n\n\n\n
As 2023 is the start-up year for North American Lithium, the parties have agreed that Piedmont\u2019s allocation this year will be the greater of 56,500 metric tons or 50% of 2023 spodumene concentrate production. <\/p>\n\n\n\n
Sales by North American Lithium to its customers are expected to support its operating expenses, while sales under the Piedmont offtake agreement will fund the company\u2019s broader strategic initiatives, including development of projects in Tennessee, North Carolina, and Ghana.<\/p>\n\n\n\n
Following the initial shipment, the parties have agreed that the next two shipments will be to Piedmont customers via the offtake agreement. Piedmont expects to deliver 15,000 metric tons to an undisclosed international trading company this month; these tons are already produced and stocked at the port. A further 15,000 metric tons are planned for shipment in September-October to LG Chem as the initial component of a four-year, 200,000-metric-ton agreement announced in February.<\/p>\n\n\n\n
\u201cFor 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,\u201d said Keith Phillips, President and CEO of Piedmont. <\/p>\n\n\n\n
\u201cOur 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.\u201d<\/p>\n\n\n\n