12 Jan Sayona Mining secures Piedmont Lithium investment and offtake deal
ASX-listed lithium miners Sayona Mining and Piedmont Lithium have struck a strategic partnership that will support the development of North America’s battery metals supply chain.
North Carolina-based Piedmont will invest up to US$12 million in Sayona to acquire 19.9% of its issued capital and a 25% interest in its subsidiary Sayona Quebec.
The funds will contribute towards Sayona Quebec’s growth plans in the Canadian province, which include the Authier Lithium Project, the Tansim Lithium Project and the development of a lithium hub.
In return, Sayona will supply 60,000 tonnes per annum of spodumene concentrate (or 50% of its total production— whichever is greater) to Piedmont’s processing plant in North Carolina.
The binding offtake arrangement will help Piedmont achieve its goal of producing 160,000 tonnes of spodumene concentrate every year and 22,700 tonnes of battery-quality lithium hydroxide per annum.
“At the moment a lot of lithium is shipped up from Australia to China for processing,” said Sayona managing director Brett Lynch. “With trade wars, COVID-19 and issues like global warming, it makes more sense for companies like Piedmont to seek a North American supplier.”
Piedmont, which signed a sales agreement with electric vehicle giant Tesla in September last year, will become Sayona’s biggest single shareholder under the partnership.