Prime 3 US Lithium Shares of 2023

Yr-to-date acquire: 31.81 %; market cap: C$1.17 billion; present share worth: C$61.16

Primarily based within the US state of North Carolina, Piedmont Lithium is concentrated on producing lithium hydroxide to supply firms with a supply outdoors of China. To take action, Piedmont is advancing its totally built-in Carolina lithium mission in North Carolina and is planning the largest US lithium hydroxide plant, which might be in Tennessee. The corporate acquired a US$141.7 million grant for the plant from the US authorities final yr.

Piedmont has pursuits outdoors the US as nicely. In Quebec, Canada, Piedmont has a 25 % curiosity within the Sayona Quebec three way partnership with Sayona Mining (ASX:SYA,OTCQB:SYAXF). The 2 firms successfully restarted spodumene production at Sayona Quebec’s North American Lithium (NAL) mission in March, which is predicted to provide 226,000 MT yearly and is ready to start industrial shipments in Q3.

In mid-February, Piedmont introduced that LG Chem (KRX:051910) was investing US$75 million in Piedmont, and that the battery maker had signed a 4 yr offtake agreement for a complete of 200,000 MT of spodumene from the NAL mission; it is going to be used to create cathode supplies that adjust to the US Inflation Discount Act. Piedmont’s share worth hit a year-to-date peak of US$73.46 on the information earlier than shifting again down within the following weeks.

Piedmont has an earn-in settlement for as much as a 50 % curiosity in Atlantic Lithium’s (ASX:A11,LSE:ALL,OTC Pink:ALLIF) lithium portfolio in Ghana, together with its flagship Ewoyaa mission, which Piedmont plans to make use of to partially feed its Tennessee plant.

Nonetheless, in early March, Piedmont’s share worth was damage by a brief vendor report written by Blue Orca, which has a brief curiosity within the miner. Blue Orca claimed that a few of Atlantic Lithium’s licenses have been obtained by “making secret funds … (to the) household of a high-level Ghana politician.” Blue Orca, which has a brief curiosity in Piedmont, mentioned this makes the Ghana authorities unlikely to approve Atlantic’s mining licenses for the Ewoyaa mission.

Atlantic firmly denied the allegations and likewise mentioned that the focused licenses aren’t a part of its mining license utility for Ewoyaa. Piedmont stated that even with out provide from Ewoyaa, it is going to be in a position to safe provide elsewhere.

Information of the NAL restart helped the corporate’s share worth get well, and in April, the corporate filed its feasibility study for the Tennessee plant, which is able to produce 30,000 MT of lithium hydroxide yearly. Building of the plant is predicted to start in 2024. Estimated research economics present an after-tax web current worth of US$2.5 billion at an 8 % low cost and an after-tax inner charge of return of 32 %.

In June, two more technical reports have been launched: Atlantic Lithium printed a definitive feasibility research for Ewoyaa with a manufacturing goal of 340,000 MT of spodumene focus per yr, and Sayona printed a preliminary technical research for NAL’s lithium carbonate manufacturing.