Scoping Update Highlights the Exceptional Economics and Industry-Leading Sustainability of Piedmont’s Carolina Lithium Project
Piedmont Lithium Inc. (“Piedmont” or the “Company”) is pleased to report the results of the updated scoping study (“Scoping Study” or “Study”) for its proposed integrated lithium hydroxide business (“Carolina Lithium” or the “Project”) in Gaston County, North Carolina. The Study confirms that Carolina Lithium will be one of the world’s largest and lowest-cost producers of lithium hydroxide, with a sustainability footprint that is superior to incumbent producers, all in an ideal location to supply the rapidly growing electric vehicle supply chain in the United States.
PROJECT HIGHLIGHTS
Sustainable Lithium Hydroxide Manufacturing
Piedmont Carolina Lithium is expected to have a superior sustainability profile relative to the current producers based in China and South America. Chinese lithium producers are highly reliant on coal-fired power and generally utilize a carbon-intensive sulfuric acid roasting process to convert raw materials shipped in from Australia, while South American producers tend to utilize vast tracts of land and large quantities of water, all in the driest desert in the world, the Atacama.
- Metso Outotec process reduces emissions, eliminates sulfuric acid roasting, and reduces solid waste
- Solar power generation, in-pit crushing, and electric conveying reduce reliance on carbon-based energy sources
- Vastly diminished transportation distances for raw materials and finished product
- Highly efficient land and water use compared with South American brine production
- Far lower CO2 intensity than incumbent China hydroxide production including Scope 1, 2, and 3 emissions
- Independent preliminary Life-Cycle Analysis (“LCA”) completed with Minviro
Figure 1 – Life cycle analysis of key carbon intensity, water usage, and land footprint of Piedmont Carolina Lithium
Exceptional Economics and Scale
The Study confirms that Piedmont will be a large and low-cost producer of lithium hydroxide, benefitting from its ideal location in Gaston County, North Carolina, with exceptional infrastructure, a deep local talent pool, low-cost energy, and proximity to local markets for the monetization of by-product industrial minerals. The Study results represent a substantial improvement over prior studies despite the use of more conservative assumptions related to mining dilution and metallurgical recoveries.
The competitive advantage of Piedmont’s unique location is depicted in the following lithium hydroxide cost curve, which was prepared by Roskill, a leading lithium industry consultancy.
Figure 2 – Lithium hydroxide 2028 AISC cost curve (real basis) (Roskill)
AISC includes all direct and indirect operating costs including feedstock costs (internal AISC), refining, corporate G&A and selling expenses.
Fully Integrated Manufacturing Campus
Piedmont Carolina Lithium contemplates a single, integrated site, comprising quarrying, spodumene concentration, by-products processing, and spodumene conversion to lithium hydroxide. There are currently no such integrated sites operating anywhere in the world, and the economic and environmental advantages of this strategy are compelling:
- Premier location in Gaston County, North Carolina – “the cradle of the lithium business”
- Elimination of SC6 transportation costs and related noise and emissions
- On-site solar complex to power concentrate operations and reduce reliance on diesel fueled equipment
- Potential to co-locate other downstream battery materials / Li-ion battery manufacturing
- Creation of up to 500 manufacturing, engineering, and management jobs
- Site offers potential to expand hydroxide capacity by adding additional manufacturing trains in the future
Figure 3 – Indicative proposed site plan for Piedmont’s Carolina Lithium operations
“We are exceedingly pleased with the results of our updated Scoping Study. The economics of our Project continue to impress, but I am particularly proud of the Project’s sustainability profile. Customers, investors, and neighbors are increasingly focused on businesses that are “doing things the right way.” It is critical that raw material supply chains do not detract from the overall sustainability of the transition to electric vehicles. Our project will have a far lower environmental footprint than alternative suppliers, and we expect that to position Piedmont well with all stakeholders.
As we move forward to complete a Definitive Feasibility Study for Carolina Lithium later in 2021, Piedmont has engaged Evercore and JPMorgan as financial advisors to evaluate potential strategic partnering and financing options for its North Carolina Project. Given the Project’s unique position as the only American spodumene project, with world-class scale, economics, and sustainability, we expect strategic interest to be robust.
Keith D. Phillips, President and Chief Executive Officer
For further information, contact:
Keith Phillips
President & CEO
T: +1 973 809 0505
Brian Risinger
VP - Corporate Communications
T: +1 704 910 9688
E: brisinger@piedmontlithium.com
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Forward Looking Statements
This announcement may include forward-looking statements. These forward-looking statements are based on Piedmont’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Piedmont, which could cause actual results to differ materially from such statements. Piedmont makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources
The information contained herein has been prepared in accordance with the requirements of the securities laws in effect in Australia, which differ from the requirements of United States securities laws. The terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are Australian mining terms defined in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Comparable terms are now also defined by the U.S. Securities and Exchange Commission (“SEC”) in its newly adopted Modernization of Property Disclosures for Mining Registrants as promogulated in its S-K 1300 standards. While the guidelines for reporting mineral resources, including subcategories of measured, indicated, and inferred resources, are largely similar for JORC and S-K 1300 standards, documentation is ongoing with respect to the S-K 1300 Technical Report Summary template to formally categorize Piedmont’s mineral holdings as both JORC and S-K 1300 compatible. While the competent persons responsible for this announcement do not foresee any challenges in categorizing the resources delineated in this announcement as S-K 1300 compliant, information contained herein that describes Piedmont’s mineral deposits is not fully comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder. U.S. investors are urged to consider Piedmont’s disclosure in its SEC filings, copies of which may be obtained from Piedmont or from the EDGAR system on the SEC’s website at http://www.sec.gov/.
Competent Persons Statements
The information in this announcement that relates to Exploration Results is based on, and fairly represents, information compiled or reviewed by Mr. Lamont Leatherman, a Competent Person who is a Registered Member of the ‘Society for Mining, Metallurgy and Exploration’, a ‘Recognized Professional Organization’ (RPO). Mr. Leatherman is an employee of the Company. Mr. Leatherman has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Leatherman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to lithium Mineral Resources is extracted from our announcement entitled “Piedmont Increases Lithium Resources by 40%” dated April 8, 2021. The information in this announcement that relates to by-product Mineral Resources is extracted from our announcement entitled “Piedmont Focused on Increased Sustainability with 40% Increase in Quartz, Feldspar, and Mica Mineral Resources” dated June 8, 2021. Both announcements are available to view on the Company website at www.piedmontlithium.com. Piedmont confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcements; b) all material assumptions and technical parameters underpinning the Mineral Resources in the original announcements continue to apply and have not materially changed; and c) the form and context in which the Competent Person’s findings are presented in this announcement have not been materially modified from the original announcements.
The information in this announcement that relates to Metallurgical Testwork Results is based on, and fairly represents, information compiled or reviewed by Dr. Jarrett Quinn, a Competent Person who is a Registered Member of Ordre des Ingénieurs du Québec’, a ‘Recognized Professional Organization’ (RPO). Dr. Quinn is consultant to Primero Group. Dr. Quinn has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’. Dr. Quinn consents to the inclusion in the report of the matters based on information in the form and context in which it appears.
The information in this announcement that relates to Process Design, Capital Costs, and Operating Costs is based on, and fairly represents, information compiled or reviewed by Mr. Alexandre Roy, a Competent Person who is a Registered Member of ‘Ordres des Ingenieurs du Quebec’, a ‘Recognized Professional Organization’ (RPO). Mr. Roy is a full time employee of Primero Group. Mr. Roy has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’. Mr. Roy consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Mining Engineering and Mining Schedule is based on information compiled by Mr. Chris Scott and reviewed by Dr. Steven Keim, both of whom are employees of Marshall Miller and Associates (MM&A). Dr. Keim takes overall responsibility as Competent Person for the portions of the work completed by MM&A. Dr. Steven Keim is a Competent Person who is a Registered Member of the ‘Society for Mining, Metallurgy & Exploration Society’, a ‘Recognized Professional Organization’ (RPO). Dr. Keim has sufficient experience, which is relevant to the style of mineral extraction under consideration, and to the activity he is undertaking, to qualify as Competent Person in terms of the JORC Code (2012 Edition). Dr. Keim has reviewed this document and consents to the inclusion in this report of the matters based on his information in the form and context within which it appears.
This announcement has been authorized for release by the Company’s CEO, Mr. Keith Phillips.
