High 3 US Lithium Shares of 2023

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

Based mostly 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 undertaking in North Carolina and is planning the largest US lithium hydroxide plant, which can be in Tennessee. The corporate obtained a US$141.7 million grant for the plant from the US authorities final yr.

Piedmont has pursuits outdoors the US as properly. 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) undertaking in March, which is anticipated to supply 226,000 MT yearly and is about to start business 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 undertaking; will probably 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 undertaking, which Piedmont plans to make use of to partially feed its Tennessee plant.

Nevertheless, 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 undertaking.

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, will probably 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 can produce 30,000 MT of lithium hydroxide yearly. Development of the plant is anticipated to start in 2024. Estimated examine economics present an after-tax web current worth of US$2.5 billion at an 8 % low cost and an after-tax inside price of return of 32 %.

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