Piedmont Lithium (NASDAQ:PLL) Inc (ASX:PLL, NASDAQ:PLL, XETRA:) and its North American Lithium (NAL) partner Sayona Mining Ltd made history on August 1 with their first commercial shipment of 20,500 metric tonnes of spodumene concentrate produced by NAL in Quebec.
NAL, wholly-owned by Sayona Quebec, a joint venture between Piedmont (25%) and Sayona 75%), completed the shipment via a trading company to international parties from the Port of Quebec City.
Loading the spodument concentrate onto the tanker.
Grand plans
Piedmont president and chief executive officer Keith Phillips said the first set of shipments was a momentous occasion for the company as it transitioned from a developer to a lithium producer.
“For the last seven years, Piedmont Lithium has focused on developing a supply of crucial lithium resources, and we are excited to begin generating revenue and cash flow as we see our plans come to fruition.
“Our products will help our customers meet the requirements of the Inflation Reduction Act and, in turn, the growing demands of the US electric vehicle and battery supply chains.”
More shipments coming up
Piedmont, which also owns a 12% equity interest in Sayona Mining, has an offtake agreement with Sayona Quebec, which allows for the purchase of the greater of 113,000 tonnes per year or 50% of spodumene concentrate production at a ceiling price of $900 per tonne on a life-of-mine basis.
Since 2023 is NAL's start-up year, Piedmont's allocation has been set at the greater of 56,500 tonnes or 50% of the year's production.
Both parties have agreed that the next two shipments will be through Piedmont's allocation, where the company will deliver 15,000 tonnes to a major international trading company this month and another 15,000 tonnes to LG Chem in September/October.
The latter will be the first of the four-year, 200,000-tonne shipment to the South Korean company.
Sales under the Piedmont offtake agreement will finance the company's wider strategic initiatives such as projects in Tennessee, Ghana and North Carolina, while sales by the joint venture will cover operating expenses.