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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Despite slashing its spending target for the year, Piedmont Lithium (NASDAQ:PLL) (Bessemer City, North Carolina) said a detailed operational review of its portfolio prompted it to ramp up operations and production in the North American market.
Through joint venture North American Lithium (NAL), controlled by emerging Australian lithium supplier Sayona Mining Limited (Milton, Queensland), Piedmont Lithium said lithium recoveries month-to-date through March were at 69%, beating its 67% target rate.
Backed by investments totaling around $65 million, NAL started producing spodumene, a mineral that's a commercially important source of lithium, in March 2023 at its site in Quebec, Canada.
"The complex has an open-pit mine to extract quality spodumene concentrate," the parent company, Sayona, explained. "It also has a plant that can process up to 3,800 tons of ore per day and a refinery to extract lithium carbonate."
Further capital investments in the site's infrastructure mean production can increase with "meaningful" cost improvements. NAL delivered its first commercial shipment of approximately 20,500 metric tons of spodumene concentrate in early August to a third party. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for project reports related to NAL.
"NAL production has been ramping up well, albeit in a challenging lithium market," said Keith Phillips, the president and chief executive officer of Piedmont Lithium. "With the imminent completion of important capital improvement projects expected to lead to production increases and operating cost improvements, we believe the project is well-positioned for the market recovery we anticipate and to operate successfully over the long term."
That comes after Michael White, the company's chief financial officer, said earlier this year that spending would be slashed from around $57 million in 2023 to between $10 million and $14 million this year, largely in response to a market downturn.
"In response to current lithium market conditions, our planned funding is significantly reduced from our 2023 funding levels," he said in February. For related information, see February 27, 2024, article - Piedmont Lithium Slashes 2024 Capex Amid Lower Prices.
Lithium prices are rebounding but have only slightly recovered from a two-and-a-half-year low this year because of the slowdown in demand for electric vehicles and an oversupply of lithium for battery producers.
Tesla Incorporated (NASDAQ:TSLA) (Austin, Texas) said recently that vehicle deliveries totaled 386,810 over the three-month period to March, compared to 423,000 over the same period last year.
Outside of the Quebec operation, Piedmont, the minority partner in NAL, is seeking regulatory approval for a project in North Carolina, which would be an open-pit operation with a capacity of some 23 million tons per year.
Another facility in Tennessee is already sanctioned and designed for 30,000 tons of production. Subscribers can read more information on the Tennessee and Carolina projects.
Li-Bridge, a public-private alliance working to build up the domestic supply chain for lithium-based batteries in the United States, said last year that the country is at least a decade behind its peers in terms of lithium.
The Inflation Reduction Act (IRA) could help address that challenge for the United States, however. But to capitalize on incentives, at least 40% of the critical materials used in EV batteries need to come from countries that have a free trade agreement with the United States or come from U.S. miners and recycling plants. That increases 10% each calendar year until it reaches a maximum of 80% in 2027.
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).
Through joint venture North American Lithium (NAL), controlled by emerging Australian lithium supplier Sayona Mining Limited (Milton, Queensland), Piedmont Lithium said lithium recoveries month-to-date through March were at 69%, beating its 67% target rate.
Backed by investments totaling around $65 million, NAL started producing spodumene, a mineral that's a commercially important source of lithium, in March 2023 at its site in Quebec, Canada.
"The complex has an open-pit mine to extract quality spodumene concentrate," the parent company, Sayona, explained. "It also has a plant that can process up to 3,800 tons of ore per day and a refinery to extract lithium carbonate."
Further capital investments in the site's infrastructure mean production can increase with "meaningful" cost improvements. NAL delivered its first commercial shipment of approximately 20,500 metric tons of spodumene concentrate in early August to a third party. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for project reports related to NAL.
"NAL production has been ramping up well, albeit in a challenging lithium market," said Keith Phillips, the president and chief executive officer of Piedmont Lithium. "With the imminent completion of important capital improvement projects expected to lead to production increases and operating cost improvements, we believe the project is well-positioned for the market recovery we anticipate and to operate successfully over the long term."
That comes after Michael White, the company's chief financial officer, said earlier this year that spending would be slashed from around $57 million in 2023 to between $10 million and $14 million this year, largely in response to a market downturn.
"In response to current lithium market conditions, our planned funding is significantly reduced from our 2023 funding levels," he said in February. For related information, see February 27, 2024, article - Piedmont Lithium Slashes 2024 Capex Amid Lower Prices.
Lithium prices are rebounding but have only slightly recovered from a two-and-a-half-year low this year because of the slowdown in demand for electric vehicles and an oversupply of lithium for battery producers.
Tesla Incorporated (NASDAQ:TSLA) (Austin, Texas) said recently that vehicle deliveries totaled 386,810 over the three-month period to March, compared to 423,000 over the same period last year.
Outside of the Quebec operation, Piedmont, the minority partner in NAL, is seeking regulatory approval for a project in North Carolina, which would be an open-pit operation with a capacity of some 23 million tons per year.
Another facility in Tennessee is already sanctioned and designed for 30,000 tons of production. Subscribers can read more information on the Tennessee and Carolina projects.
Li-Bridge, a public-private alliance working to build up the domestic supply chain for lithium-based batteries in the United States, said last year that the country is at least a decade behind its peers in terms of lithium.
The Inflation Reduction Act (IRA) could help address that challenge for the United States, however. But to capitalize on incentives, at least 40% of the critical materials used in EV batteries need to come from countries that have a free trade agreement with the United States or come from U.S. miners and recycling plants. That increases 10% each calendar year until it reaches a maximum of 80% in 2027.
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).
