Piedmont Lithium Inc Stock Price, News & Analysis

Piedmont Lithium has announced the results of its Definitive Feasibility Study (DFS) for the proposed Tennessee Lithium project in McMinn County, Tennessee. The study predicts a post-tax Net Present Value (NPV) of $2.5 billion and an after-tax Internal Rate of Return (IRR) of 32% over a 30-year project life. The plant aims to produce 30,000 metric tons of lithium hydroxide annually using advanced Metso:Outotec technology. Average annual EBITDA is estimated at $376 million, and after-tax cash flow should reach $317 million. This is bolstered by the Inflation Reduction Act's production tax credit. Construction is targeted for 2024, with favorable site conditions and infrastructure to support rapid development.

Piedmont Lithium Inc. announced developments from its joint venture with Sayona Mining regarding the North American Lithium (NAL) project in Quebec. A definitive feasibility study (DFS) has been completed, projecting an average spodumene concentrate production of 190,000 metric tons per year over 20 years, with a higher initial target of 226,000 metric tons in the first four years. Additionally, Sayona's Moblan Lithium Project has seen a rise in measured and indicated mineral resources to 41.1 million metric tons at 1.32% Li₂O. Piedmont's agreements with LG Chem and Tesla for concentrate supply beginning in H2 2023 signal a robust demand outlook.

The demand for lithium is expected to surge due to increasing energy storage needs driven by urbanization and industrialization. Advances in mining technology, such as direct extraction methods, enhance the efficiency and sustainability of lithium production. According to Fortune Business Insights, the global lithium mining market is projected to reach $516.22 million by 2028, growing at a CAGR of 6%. Major countries involved in lithium production include the US, Canada, Australia, and Chile, with Australia holding the largest market share. Active mining stocks include Livent Corporation (NYSE: LTHM), American Lithium Corp. (NASDAQ: AMLI), and Piedmont Lithium Inc. (NASDAQ: PLL). Recent developments highlight the potential for increased lithium resources and production capacity across North America, reinforcing the importance of lithium in the electric vehicle and battery sectors.

The lithium market is expected to grow significantly, with a projected CAGR of 13.5% from 2023 to 2028, reaching a valuation of USD 10.6 billion by 2028. This growth is driven by the increasing demand for electric vehicles (EVs) and government subsidies, leading to a rise in lithium mining activities. Active stocks in the sector include Lithium South Development (LISMF), Lithium Americas (LAC), Standard Lithium (SLI), and Piedmont Lithium (PLL). The completion of resource expansion programs and projects like the Thacker Pass by Lithium Americas indicates promising developments in lithium supply, essential for the booming EV market.

Sayona Mining Limited and Piedmont Lithium Inc. have successfully restarted commercial spodumene concentrate production at the North American Lithium (NAL) project in Quebec. The $US80 million project was completed on time and within budget, targeting a production rate of 226,000 metric tons per year. First commercial shipments are expected in Q3 2023, with a focus on supplying key battery manufacturers like Tesla and LG Chem. NAL is projected to be the only major source of new spodumene concentrate in North America in the near term.