Piedmont Lithium announces first commercial shipment of SC produced by NAL

Piedmont Lithium announced the first commercial shipment of spodumene concentrate, or SC, produced by North American Lithium, or NAL, which is wholly owned by Sayona Quebec, a joint venture between Piedmont, 25%, and Sayona Mining, 75%. NAL made the initial 20,500 metric ton shipment of spodumene concentrate via a trading company to international parties. Piedmont owns a 12% equity interest in Sayona Mining and holds an offtake agreementwith the JV to purchase the greater of 113,000 metric tons per year or 50% of SC production at a ceiling price of $900 per metric ton on a life-of-mine basis. As 2023 is the start-up year for NAL, the parties have agreed that Piedmont’s allocation this year will be the greater of 56,500 metric tons or 50% of 2023 SC production. Sales by the JV to its customers are expected to support JV operating expenses, while sales under the Piedmont Offtake Agreement are planned to fund the Company’s broader strategic initiatives, including development of our projects in Tennessee, Ghana, and North Carolina. Following this initial JV shipment, the parties have agreed that the next two shipments will be to Piedmont customers via the Offtake Agreement. Piedmont expects to deliver 15,000 metric tons to a major international trading company in August; these tons are already produced and stocked at the port. A further 15,000 metric tons are planned for shipment in September-October to LG Chem as the initial component of the four-year, 200,000-metric-ton agreement announced in February.