North American Lithium’s Production Ramp-Up Continues with Positive Results

North American Lithium (NAL), co-owned by Piedmont and Sayona Mining, is experiencing a successful ramp-up in its spodumene production, surpassing initial targets and setting multiple production records in March 2024. The plant's process recoveries have exceeded expectations, with a recent achievement of 69% lithium recovery, surpassing the ramp-up goal of 67%. Spodumene concentrate production has seen a significant increase, reaching a new daily record of 740 metric tons. The operation's product quality remains high with an average grade of 5.45% Li2O.

In light of a detailed operational review, amidst a challenging lithium market, the joint venture has decided to press ahead with its ramp-up activities, aiming for steady-state production within the year. This decision is buoyed by the successful execution of several ongoing capital projects, including the implementation of a crushed ore storage dome and a crushed ore re-feed system, slated for commissioning in May 2024. These improvements are anticipated to significantly reduce operating costs and increase production efficiency.

Piedmont, holding a 25% stake in NAL, alongside Sayona Mining, which holds the remaining 75%, announced that this strategic step aims to solidify NAL's position as the largest spodumene mine in North America. The company's leadership remains optimistic about the mine's future, especially with the expected market recovery and the mine's operational improvements positioning it for long-term success.

The initial shipments to contract customers are scheduled to begin in 2024, aiming to lessen the dependency on the more volatile spot markets. Piedmont has reported shipping 15,000 tonnes in the first quarter of 2024 and projects to increase shipments to 126,000 tonnes towards the second half of the year.