PIEDMONT COMPLETES PRELIMINARY ECONOMIC ASSESSMENT FOR SECOND U.S. LITHIUM HYDROXIDE PLANT

Piedmont Lithium is pleased to report the results of a Preliminary Economic Assessment (“PEA”) for a proposed merchant lithium hydroxide plant (“LHP-2”) to expand Piedmont’s planned U.S. manufacturing capacity to 60,000 metric tons per year of lithium hydroxide. The PEA results for LHP-2 demonstrate the potential for Piedmont Lithium to expand its lithium hydroxide manufacturing business using spodumene concentrate secured under existing supply agreements with Sayona Mining (ASX: SYA) and Atlantic Lithium (AIM: ALL) as well as other sources. The PEA assumes that Piedmont Lithium’s LHP-2 is located on one of several sites under consideration that share similar physical and operating characteristics with respect to capital costs, acreage, infrastructure, rail access, proximity to transportation routes, potential customers, and available workforce.

The PEA assumes a 30-year life of operations with production of 30,000 metric tons per year of battery grade lithium hydroxide. Projected capital costs are $572 million, with steady-state, all-in sustaining lithium hydroxide production costs estimated to be approximately $10,630 per metric ton (“t”). The PEA assumes fixed pricing of $22,000/t for lithium hydroxide and $1,200/t for spodumene concentrate.  Based on these assumptions, the PEA for LHP-2 resulted in a projected average steady-state EBITDA of $346 million per year, an estimated net present value of approximately $2.25 billion, and an internal rate of return of 33%.

LHP-2 development remains subject to, among other things, a final site selection and financing. Piedmont plans to advance Carolina Lithium, LHP-2, Ewoyaa, and NAL restart on the earliest practical timelines, subject to permitting and regulatory approvals for each project.

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The full announcement of the Preliminary Economic Assessment results can be found on the Company’s website by clicking here.

Comments from President and CEO Keith Phillips:

2021 was a transformative year for electrification in the United States. Current and forecasted battery manufacturing capacity now exceeds 500 gigawatt-hours (“GWh”) with public announcements of over $25 billion in capital investments to occur by 2025.  The potential lithium volume these battery plants will require reinforces the importance of developing a domestic lithium supply chain and solidifies our decision to aggressively evaluate and pursue expansion opportunities for a second lithium hydroxide plant. The planned 2023 restart of North American Lithium in conjunction with our partner, Sayona Mining, and potential for spodumene production at Ewoyaa in partnership with Atlantic Lithium as early as 2024 ensures that our LHP-2 operations will have dedicated material supply from day one.  With prevailing spot lithium prices at approximately triple the fixed pricing assumptions used in the PEA, Piedmont has substantial leverage relative to higher lithium prices across our entire portfolio of projects.