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Tens of millions for Piedmont

Piedmont Lithium and LG Chem have reached a $75 million offtake agreement.

Under the agreement, LG will make a $75 million investment in Piedmont and commit to the off take of 200,000 metric tonnes of spodumene concentrate from Piedmont’s open-pit North American Lithium mining operation over four years.

At an approximate price of $68.40 per share, LG will purchase 1,096,535 newly-issued Piedmont shares.

Closing of the agreement is expected to occur on or around February 24.

“We welcome LG Chem as a shareholder in Piedmont and are excited to partner with them to supply North American Lithium that will meet the requirements of the IRA and support the development of the US battery supply chain,” Piedmont president and chief executive officer Keith Phillips said.

“LG Chem is a global leader with a commitment to US EV (electric vehicle) battery manufacturing and plans to build one of the world’s largest cathode plants in Clarksville, Tennessee. We look forward to working with LG Chem as NAL (North American Lithium) comes online as an important source of lithium in North America.”

“This agreement allows LG Chem to provide differentiated values to North American customers with products that satisfy IRA (Inflation Reduction Act)standards by preemptively securing raw materials in the US, our key market,” LG Chem vice chairman and chief executive officer Hak-Cheol Shin said.

“As we work to build various partnerships, including joint metal investments with automotive OEMs (original equipment manufacturers) and battery makers, we’re pleased that our partnership with and commitment of funds to Piedmont will help support its development of US lithium projects.”

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