Piedmont Lithium releases chemical plant PFS – does not need the Chinese market

Piedmont Lithium Limited (“Piedmont” or “Company”) is pleased to report the results of the Company’s pre-feasibility study (“PFS”) for its proposed lithium hydroxide chemical plant (“Chemical Plant”) in Kings Mountain,North Carolina, USA. The PFS assumes a stand-alone merchant Chemical Plant that would convert spodumene concentrate purchased on the global market to battery-grade lithium hydroxide (“Merchant Project”).

Concurrently, Piedmont has updated the scoping study for its integrated mine-to-hydroxide project (“Integrated Project”) to reflect the updated Chemical Plant PFS. Both studies confirm that Piedmont will be a strategic and low-cost producer of battery-grade lithium hydroxide. Piedmont benefits from access to the exceptional infrastructure, low operating costs and low corporate taxes enjoyed by American industrial companies.

Piedmont’s Chemical Plant would create an alternative to the numerous merchant spodumene converters currently operating in China and dominating the world lithium hydroxide market, thus providing US and European automotive companies a secure and independent American source of the lithium hydroxide required for their supply chains. (Currently 80 per cent of the world’s LiOH is produced and nearly 100% of global spodumene is converted in China.)

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The report shows the main points:

• Piedmont’s Chemical Plant will convert spodumene to provide 22,720 tonnes of LiOH per annum to US and European automotive companies as a secure and independent US source for OEM supply chains.
• The PFS confirms that Piedmont will be a strategic, low-cost producer of advanced battery-grade lithium hydroxide.
  • Piedmont benefits from excellent local infrastructure, close proximity to US and European OEM markets, low operating costs and low corporate taxes.
  • LiOH demand in EVs is growing at 37% CAGR to 2028, and OEMs prefer LiOH sourced from higher quality spodumene (rather than brine).
• Lower operating costs over the 25-year project life provide Internal Rates of Return (IRR) of 26%, with Net Present Values (NPV) for the Merchant Project of US$714 million expected and Integrated Project of US$1.1bn.
• Piedmont has updated its Scoping Study for its integrated mine-to-hydroxide project to reflect the Chemical Plant PFS.

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