Piedmont Lithium Reports Record Production Volumes

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The domestic effort to shore up the lithium necessary for everything from batteries to electronics accelerated with U.S.-based Piedmont Lithium Incorporated (Belmont, North Carolina) reporting record production levels for the second quarter.

Piedmont billed itself as the leading supplier of lithium products in North America, providing critical materials to the U.S. electric vehicle supply chain. At the North American Lithium (NAL) facility in Quebec, the company said it's been an active three months.

"NAL continued to demonstrate strong operational performance in the second quarter amidst a challenging lithium market," Keith Phillips, the president and chief executive officer of Piedmont Lithium, said Friday. "NAL achieved record lithium recovery and mill utilization rates, resulting in record quarterly production and sales, which include over 20,000 tons delivered to and sold by Piedmont."

Piedmont yielded 58,533 dry metric tons of spodumene concentrate, with a lithium recovery rate of 73% and a mill utilization rate of 93%, both marking new records for the company.

As cell phones and electric vehicles become more ubiquitous, the lithium market is expanding.

In Michigan, utility company DTE Energy Company (Detroit, Michigan) is working on a $423 million battery energy-storage system (BESS) near Detroit that would draw on lithium-iron-phosphate battery technology at a retired coal-fired power plant. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant and Project databases can learn more about the Trenton Channel BESS from a detailed project report.

Drawing on U.S. President Donald Trump's efforts to reshore much of the economy, the Interior Department has leaned on an emergency energy declaration to streamline reviews of critical mineral projects. Trump in declaring the emergency early this year said the lack of domestic resources left the country "vulnerable to hostile foreign actors."

The president, meanwhile, placed the Kings Mountain mining operation in North Carolina on fast-track status. Kings Mountain already received $150 million in federal funding to support construction of a facility that could produce 350,000 tons per year of lithium oxide concentrate.

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With few mines in service, the United States remains dependent on imports for many critical minerals such as lithium, with China controlling about 70% of the market.

Despite federal support and mounting demand, meanwhile, Piedmont's financial performance did not keep up with production. On the 20,000 tons of lithium sales, the company drew in $11.9 million in revenue, down from $20 million from 27,000 tons sold during the first quarter. On profitability, the company took a net loss of $9.7 million.

Oversupply from China is creating headwinds for the lithium market. Lithium was fetching $9.90 per kilogram as of Thursday, down from around $11 at the start of the year.

Piedmont and Australia-based Sayona Mining (Brisbane) are putting the final touches on plans announced in November to form a 50:50 joint venture.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).