Piedmont Lithium Inc Stock Price, News & Analysis

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.

Piedmont Lithium (Nasdaq: PLL) has expanded its Board of Directors by appointing Christina Alvord and Michael Bless to new directorships effective January 3, 2023. This decision increases the Board size from five to seven members, aimed at enhancing executive and strategic guidance for the company's lithium hydroxide production initiatives. Both Alvord and Bless bring extensive leadership experience from successful mining and industrial backgrounds, which is expected to support Piedmont's mission towards becoming a major contributor to the U.S. EV supply chain.

Piedmont Lithium has amended its offtake agreement with Tesla to supply approximately 125,000 metric tons of spodumene concentrate (SC6) from North American Lithium over a three-year term, with an option to renew. Deliveries are set to commence in H2 2023 and continue through the end of 2025. Pricing will be based on market rates for lithium hydroxide. This agreement aligns with the push for a robust North American lithium supply chain and supports clean energy initiatives under the Inflation Reduction Act.