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Piedmont accelerating lithium chemical plant development

In response to strong interest from potential customers, Piedmont Lithium Ltd. is fast-tracking the development of its namesake lithium chemical plant in North Carolina by compressing its project timeline into a single stage, targeting production in late 2022.

The company, which is in discussions with numerous prospective customers, said lithium hydroxide demand is projected to grow 35% per annum through 2025, and the project acceleration will help the company capitalize on anticipated shortfalls in supply beginning in 2023.

The new timeline is expected to accelerate plant development by a year through the deferral in starting mine construction, which will result in integrated operations from the beginning.

The company added Oct. 9 that the integration should lead to improved project economics given higher margins associated with the lithium chemical business while eliminating spodumene concentrate sales into the Chinese market.

Piedmont is focusing on securing a key federal permit for the mine and concentrator during the fourth quarter along with starting lithium hydroxide test work.

A pre-feasibility study of the plant is anticipated in the second quarter of 2020, while an integrated definitive feasibility study and chemical plant permitting are targeted for the fourth quarter of 2020.

An updated scoping study for the project bumped up the posttax net present value, discounted at 8%, to US$1.45 billion, with the internal rate of return lower at 34% but with a longer, 25-year mine life.