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.

Piedmont Lithium Inc. (NASDAQ:PLL) announced the successful initial production of spodumene concentrate (SC6) from its North American Lithium (NAL) project in Quebec, producing approximately 70 metric tons. The company aims for the first shipment of saleable product in Q3 2023, with plans to fully restart the operation. Piedmont holds an offtake agreement to purchase a minimum of 113,000 metric tons per year from NAL and has secured sales agreements with LG Chem and Tesla for H2 2023. Sayona Mining, the joint venture partner, targets four shipments by 2023, totaling 85,000 to 115,000 metric tons.

Piedmont Lithium Inc. (NASDAQ: PLL) acknowledges a report by Blue Orca Capital alleging impropriety regarding Atlantic Lithium Limited’s project in Ghana. Atlantic has denied these allegations. The report claims Atlantic's mining license application excludes certain licenses acquired from Joy Transporters Ltd. Piedmont holds the right to purchase 50% of Atlantic's spodumene concentrate production, which can support its planned Tennessee Lithium hydroxide plant. If this option is not exercised, Piedmont is confident in sourcing alternative spodumene concentrate. The report's publisher has a short interest in Piedmont's shares, potentially profiting from their decline.

Piedmont Lithium (NASDAQ:PLL) announced its participation in industry conferences, focusing on lithium production crucial for the U.S. electric vehicle (EV) supply chain. Key events include the BMO Annual Global Metals, Mining, and Critical Minerals Conference in Miami (Feb 26 - Mar 1), and others in Toronto, Dana Point, and New York City.

CEO Keith Phillips disclosed plans for the restart of spodumene concentrate production at North American Lithium in H1 2023, with first commercial shipments expected in Q3. The company aims to enhance its position as a leading lithium hydroxide producer in North America, driving towards energy independence and the electrification of transportation.

Piedmont Lithium (NASDAQ:PLL) has entered into significant agreements with LG Chem, committing $75 million for equity investment and securing offtake for 200,000 metric tons of spodumene concentrate over four years. LG Chem will acquire 1,096,535 shares at approximately $68.40 each, resulting in a 5.7% ownership stake. The agreements align with the Inflation Reduction Act's goals in establishing a U.S. battery supply chain. Initially, shipments will begin in Q3 2023, with a pricing mechanism linked to market rates. The funds will be utilized for advancing key projects, including lithium hydroxide production in Tennessee and North Carolina.