Source: Piedmont Lithium
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  • Piedmont Lithium (PLL) completes a Preliminary Economic Assessment (PEA) on its proposed merchant lithium hydroxide plant (LHP-2)
  • The plant would expand the North Carolina-based company’s manufacturing capacity to 60,000 tonnes per year of lithium hydroxide
  • The PEA, according to the firm, illustrates the potential to develop its lithium hydroxide manufacturing business using spodumene concentrate from market sources
  • LHP-2 will have a 30-year operation life with an annual lithium hydroxide production of 30,000 tonnes a year with an after-tax internal rate of return of 33 per cent
  • Piedmont Lithium last traded at 86.5 cents on March 9

Piedmont Lithium (PLL) has completed a Preliminary Economic Assessment (PEA) on its proposed merchant lithium hydroxide plant (LHP-2).

The second plant would expand the North Carolina-based company’s manufacturing capacity to 60,000 tonnes per year of lithium hydroxide.

The PEA, according to the firm, illustrates the potential to develop its lithium hydroxide manufacturing business using spodumene concentrate from market sources, including current offtake agreements.

The facility will become the company’s flagship lithium processing facility.

LHP-2 will have a 30-year operation life with an annual lithium hydroxide production of 30,000 tonnes a year with an after-tax internal rate of return of 33 per cent.

The total initial capital cost is forecasted to be $572mm/y when applying a fixed price of $22,000 per tonne of lithium hydroxide and $1,200 per tonne for spodumene concentrate.

“2021 was a transformative year for electrification in the United States,” said Piedmont President and CEO Keith Phillips.

“Current and forecasted battery manufacturing capacity now exceeds 500 gigawatt-hours (GWh) with public announcements of over $25 billion in capital investments to occur by 2025.

“The potential lithium volume these battery plants will require reinforces the importance of developing a domestic lithium supply chain and solidifies our decision to aggressively evaluate and pursue expansion opportunities for a second lithium hydroxide plant.

“The planned 2023 restart of North American Lithium in conjunction with our partner, Sayona Mining, and potential for spodumene production at Ewoyaa in partnership with Atlantic Lithium as early as 2024 ensures that our LHP-2 operations will have dedicated material supply from day one.

“With prevailing spot lithium prices at approximately triple the fixed pricing assumptions used in the PEA, Piedmont has substantial leverage relative to higher lithium prices across our entire portfolio of projects.”

Piedmont Lithium last traded at 86.5 cents on March 9.

PLL by the numbers
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