Piedmont Lithium Halts Expansion Amid Market Challenges

Piedmont Lithium faces financial stress and retrenchment due to an 83% drop in lithium prices over the past year. The company has canceled its Tennessee project, delayed North Carolina plans, and pulled its DOE loan application, impacting its funding and operational strategies across the U.S., Ghana, and Quebec.

Piedmont Lithium is scaling back its ambitious expansion plans due to an 83% drop in lithium prices over the past year. The precipitous price decline has prompted the company to pull its application for a U.S. Department of Energy loan and seek other funding options.

The company has canceled its Tennessee lithium project, which had received a $141.7 million government grant, and is now focusing on its North Carolina flagship project, costing more than $1 billion. However, the timeline for this project remains uncertain due to financial constraints and regulatory hurdles, including the need for a zoning variance from Gaston County.

CEO Keith Phillips stated that the company would reassess applying for the DOE loan at a future date but emphasized that market conditions require fiscal discipline. With $59 million in cash reserves, the company aims to manage its finances to weather the current market downturn. Piedmont has also been selling shares in its Ghana project to bolster cash reserves and is seeking buyers for its lithium supply from that project.

(With inputs from agencies.)