Piedmont Lithium invests in Sayona Mining amid plans for Quebec battery materials hub

by John Shepherd
US-based Piedmont Lithium said today it plans to invest up to $12m (£9m) in Sayona Mining and become a major offtake partner in the emerging lithium miner.

Sayona, which has projects in Canada and Western Australia, said the partnership would speed up its development of lithium projects in Quebec – and the creation of a "lithium hub” to supply electric vehicle battery markets.

Piedmont will acquire an initial 9.9% equity interest in Sayona and two unsecured convertible notes – which upon conversion would result in Piedmont being issued a further 10% of Sayona’s issued capital for a total consideration of about $7m.

Piedmont will also invest about $5m in cash for a 25% stake in Sayona Quebec – supporting the company’s flagship Authier Lithium Project, the emerging Tansim Lithium Project and "creation of a lithium hub in Quebec’s Abitibi region, including the company’s proposed bid for North American Lithium” in Quebec.

'Proximity to EV markets'

In addition, Piedmont has agreed a binding offtake arrangement under which it will acquire up to 60,000 tonnes per annum of spodumene concentrate or 50% of Sayona Quebec’s production, whichever is greater.

The agreement is conditional on Piedmont and Sayona agreeing to a start date for spodumene concentrate deliveries between July 2023 and July 2024.

Piedmont aims to become a key supplier of battery-grade lithium hydroxide and other chemicals to the growing EV and battery storage markets in the US.

Piedmont president and CEO Keith Phillips said: "Quebec is destined to become one of the world’s major lithium hydroxide production centres given its abundant mineral resources, low‐cost, sustainable hydroelectric power, proximity to major US and European electric vehicle markets, and pro‐electrification stance of provincial leaders.”

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