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Tuesday, February 11, 2025

Australian firm buying Piedmont Lithium

Australia’s Sayona Mining agreed to buy Belmont-based Piedmont Lithium, which is hoping to add a lithium mine in Gaston County.

The companies already jointly own a lithium project in Quebec in Canada. Having a combined firm will create a stronger business and create the largest North American lithium producer, the companies said.

The deal calls for a new Sayona subsidiary to merge with Piedmont Lithium, which has fewer than 30 employees after layoffs over the past year. Sayona will be the parent in a company that will be held roughly 50-50 by shareholders of each company. Sayona’s market value is about $250 million, while Piedmont Lithium is about $240 million.

The companies say they plan to raise about $53 million in new capital as part of the agreement, Reuters reported.

Lithium has experienced growth in recent years because of demand from Tesla and other electric-vehicle manufacturers, who rely on lithium-ion batteries. But a sharp decline in lithium prices is causing delays in investments and consolidation throughout the industry.

Piedmont is developing the Gaston County project, taking advantage of a rare U.S. location of spodumene assets. But it has faced significant opposition from local officials and residents. The company is also working on spodumene assets in Ghana with Australian-listed Atlantic Lithium. Sayona also has lithium holdings in western Australia.

Charlotte-based Albemarle, among the largest global lithium miners, laid off about 500 employees this month, and has suspended various plans.

The merger “combines two complementary businesses and will create a larger and stronger company,” Piedmont Lithium CEO Keith Phillips said in a release. He will become a strategic adviser to the combined group for as long as six months.

Sayona CEO Lucas Dow will lead the combined company, which expects to have its primary listing on Australia’s stock exchange.

Piedmont shares have traded between about $6.50 and $31.50 over the past year, after peaking at nearly $80 in 2021. Shares closed Monday at $12.25.

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