Piedmont Lithium and Sayona Mining: A Merger for Lithium Dominance

Piedmont Lithium and Sayona Mining have announced a merger that aims to create a leading North American lithium producer and developer. This strategic move will combine the complementary strengths of both companies, resulting in a simplified corporate structure and a strengthened balance sheet. The merger is expected to close in the first half of 2025, subject to shareholder approval.

The merger will create a company with an approximate 50% / 50% equity holding of shareholders of Piedmont and Sayona, on a fully diluted basis immediately post-merger. Piedmont will raise ~US$27 million, while Sayona will raise A$40 million (~US$27 million). Upon closing, Sayona will also undertake a conditional placement of A$69 million to Resource Capital Fund VIII L.P. (RCF VIII), subject to completion of the Transaction and other conditions. The equity raisings, aggregating to approximately US$99 million, will ensure MergeCo is well-positioned to accelerate growth within its enlarged portfolio.

The combined spodumene resources of Piedmont and Sayona will enhance their global competitiveness in the lithium market. The merger will create a leading North American hard rock lithium producer with geographically diversified spodumene resources. Piedmont's Carolina Lithium project and Sayona's Authier Lithium project in Quebec will provide MergeCo with a global scale of resources, enabling it to optimize downstream strategies and better meet the growing demand for lithium products, particularly for electric vehicle batteries.

The simplified corporate structure of MergeCo will lead to cost savings and improved operational efficiency. By aligning North American Lithium (NAL) offtake economics and removing contractual complexities, MergeCo can optimize resource allocation and streamline operations. This will unlock the potential for a significant brownfield expansion at NAL, enabling MergeCo to increase production capacity and ensure a steady supply of lithium products critical to the U.S. electric vehicle supply chain.



The combined scale of Piedmont and Sayona will provide strategic flexibility in optimizing downstream strategies and improving market positioning. The merged company will have an approximate 50% / 50% equity holding of shareholders, ensuring balanced control and decision-making. The combined scale will provide strategic flexibility in optimizing downstream strategies, enabling MergeCo to better navigate the lithium market and capitalize on opportunities. The simplified corporate structure will align NAL offtake economics, remove contractual complexities, and unlock the potential for significant brownfield expansion at NAL, allowing MergeCo to optimize its production and supply chain, improving market positioning and enhancing its ability to meet growing demand for lithium products, particularly in the electric vehicle industry.

In conclusion, the merger of Piedmont Lithium and Sayona Mining is a strategic move that will create a leading North American lithium producer with a simplified corporate structure and a strengthened balance sheet. The combined spodumene resources and synergies will enhance global competitiveness, while the strategic flexibility provided by the combined scale will enable MergeCo to optimize downstream strategies and improve market positioning. The merger is expected to close in the first half of 2025, subject to shareholder approval, and will position MergeCo as a major player in the global lithium market.