Piedmont Lithium (NASDAQ:PLL) Inc (ASX:PLL, NASDAQ:PLL, XETRA:) has welcomed the technical work of its partners with Atlantic Lithium Ltd releasing a definitive feasibility study (DFS) for the Ewoyaa Lithium Project in Ghana and Sayona Mining Ltd producing a preliminary study for lithium carbonate production at the North American Lithium (NAL) Project in Canada.
"We are grateful for the outstanding work by our partners at Atlantic Lithium and Sayona Mining in advancing these projects,” Piedmont Lithium president and CEO Keith Phillips said.
“We expect Ewoyaa to provide the primary feedstock for Tennessee Lithium and are in the final stages of securing the material permits needed to construct and operate the conversion facility.
“We look forward to the first spodumene shipments from NAL, expected in Q3 2023, and to confirming Piedmont's transition from lithium developer to lithium producer."
Technical studies
Atlantic Lithium Ltd released a DFS demonstrating an after-tax net present value of US$1.4 billion and an after-tax internal rate of return of more than 100%.
The DFS was developed on the basis of 25.6 million tonnes at 1.22% lithium of probable ore reserves only and forecasts a production target of 340,000 tonnes per year of spodumene concentrate.
Under Piedmont’s agreement with Atlantic Lithium, PLL expects to receive about half of that spodumene production.
Atlantic is progressing through the mine permitting process, targeting construction at Ewoyaa to begin in the second half of 2024 and production in 2025.
Piedmont Lithium is earning a 50% ownership interest in Ewoyaa and, based on completion of the DFS and Piedmont Lithium's election to proceed into project development, PLL expects to earn the first 22.5% ownership interest in Ewoyaa presently.
The NAL Project is jointly owned by Piedmont and Sayona Mining (25:75) and includes a lithium carbonate facility partially completed by previous owners of the project.
The two companies intend to work with technical advisors to determine which form of lithium chemical production – lithium carbonate versus lithium hydroxide – would best suit the project, with a definitive technical study targeted for 2024.
Piedmont expects to ship the first commercial spodumene concentrate to customers in the third quarter of this year, having ramped up production since March this year.