PLL committed to build4 Feb 2022 12:00
https://www.spglobal.com/platts/en/market-insights/latest-news/energy-transition/020322-piedmont-to-build-its-second-us-lithium-plant
"Piedmont Lithium will build a second 30,000 mt/year lithium hydroxide conversion plant in the US to accommodate its growing portfolio of spodumene supply assets,.."
"Through its own planned spodumene concentrate production and its 2021 investments tied to potential offtake agreements, the lithium producer said it now could have access up to an estimated 500,000 mt/year of spodumene supply.."
"Through its investment in Atlantic Lithium, Piedmont is exploring spodumene resources at the Ewoyaa Project in Ghana with first production possible in 2024. Ewoyaa is projected to produce about 300,000 mt/year of spodumene concentrate, and Piedmont has an offtake agreement in place for 50% of its annual output."
Building more hydroxide capacity requires spodumene supply, Ewoyaa construction becomes essential. Piedmont must now be completely satisfied that Ewoyaa's spodumene output will be up to the right quality.
Hydroxide plants are quicker to bring on than mines, with exploding new battery capacity the west has to quickly add hydroxide production (or pay China refiners at rocketing spot prices), this in time will create competition between refiners and cut back their present high margins as is already happening to battery makers.
However Li will still be in significant deficit from short mine supply, from that Li prices will still be high but more of the margin will be retained by miners where the bottleneck will remain for some time. Spodumene will be forced higher.
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