Piedmont Lithium (NASDAQ:PLL) Inc (ASX:PLL, NASDAQ:PLL, XETRA:) and North American lithium producer Sayona Mining Ltd (ASX:SYA), a leading global developer of lithium resources, have successfully restarted commercial spodumene concentrate production at the jointly owned North American Lithium (NAL) project in Quebec.
New spodumene production
The US$80 million restart of NAL was completed on time and on budget and is the only major source of new spodumene production expected in North America in the next two years.
Commercial operations kicked off with current deliveries to the Port of Quebec City. The joint venture is targeting 226,000 metric tons per year of annual production with first commercial shipments expected in the third quarter of 2023.
NAL is a joint venture between Sayona (75%) and Piedmont (25%), targeting four shipments totalling up to 120,000 metric tons by the end of 2023, which are expected to supply key battery and electric vehicle manufacturers, including LG Chem and Tesla (NASDAQ:TSLA).
Close to infrastructure
The project itself is powered by renewable hydroelectricity and ideally located in the Abitibi region of Quebec with convenient access to rail, highway, and port infrastructure to bring lithium concentrate to market.
Production at NAL is expected to be supported by the mineral resources of Sayona Quebec's Abitibi Hub projects.
Sayona Quebec is expected to provide an updated definitive feasibility study (DFS) for both NAL and its Authier Lithium Project.
Additionally, a new, large-scale, extensive drill program is planned for 2023 by NAL and Jourdan Resources Inc. related to both NAL and the adjacent Vallée Lithium Project.
The intent of the program is to define a mineral resource base capable of supplying more tons and enhanced material quality to the NAL concentrator.
A prefeasibility study (PFS) is underway to evaluate downstream production at NAL through the completion of the project's lithium carbonate plant, which was partially constructed by prior owners of the operation.
Prefeasibility study due soon
Results of the PFS are expected in the first half of 2023. Further evaluation of downstream production of lithium carbonate or lithium hydroxide in Quebec may follow the PFS study.
Piedmont president and CEO Keith Phillips said: "We applaud the work of the operating team in bringing the restart of NAL to fruition.
“This marks an exciting milestone not only for Piedmont Lithium and Sayona Mining, but the North American market for which we are working to supply critical lithium resources.
“NAL is positioned to be a key contributor to the electric vehicle and battery supply chains as demand for lithium continues to rapidly expand along with the electrification economies in both Canada and the US."