Piedmont Lithium (ASX:PLL) Completes PEA for Second Lithium Hydroxide Plant – The Market Herald

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  • Piedmont Lithium (PLL) Completes a Preliminary Economic Assessment (PEA) on its Commercial Lithium Hydroxide (LHP-2) Plant Project
  • The plant would increase the North Carolina-based company’s manufacturing capacity to 60,000 tons per year of lithium hydroxide.
  • The PEA, the firm says, illustrates the potential to expand its lithium hydroxide manufacturing business using spodumene concentrate from market sources.
  • LHP-2 will have a 30-year lifespan with an annual lithium hydroxide production of 30,000 tonnes per year with an after-tax internal rate of return of 33%
  • Piedmont Lithium last traded at 86.5 cents on March 9

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

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

The PEA, according to the company, illustrates the potential for expanding its lithium hydroxide manufacturing business using spodumene concentrate from market sources, including current off-take agreements.

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

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

The total initial capital cost is expected to be 572 mm/yr using a fixed price of $22.00 per tonne for lithium hydroxide and $1,200 per tonne for spodumene concentrate.

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

“Current and planned battery manufacturing capacity now exceeds 500 gigawatt hours (GWh) with public announcements of more than $25 billion in capital investment by 2025.

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

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

“With prevailing spot lithium prices at approximately three times the fixed price assumptions used in the PEA, Piedmont has substantial leverage against higher lithium prices across our entire project portfolio. .”

Piedmont Lithium last traded at 86.5 cents on March 9.

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