Lithium producers Sayona Mining and Piedmont Lithium are merging in an all-stock deal to create the largest North American hard rock lithium producer.
The deal worth A$931 million (US$623 million) is expected to consolidate both companies’ Canadian operations with geographically advantaged spodumene resources of global scale.
The merger comes with both companies undertaking $40 million placements, with potential for a further $22.5 million raising once the deal is closed, giving the merged company a market cap of $931 million and $149 million in cash.
The transaction will see Sayona Mining as the parent entity of MergeCo and will continue to be domiciled in Australia, with both an ASX and Nasdaq listing.
Sayona’s chief executive Lucas Dow said: “This merger marks a transformative step for Sayona and Piedmont, creating a leading North American lithium producer with the scale and capabilities to meet the growing demand for lithium products.”
“We believe our combined resources and expertise will enable us to deliver significant value to our shareholders and stakeholders. We are excited about the opportunities this merger presents to accelerate our growth plans and enhance our strategic flexibility.”
Piedmont Lithium’s chief executive Keith Phillips said: “MergeCo will be North America’s largest lithium producer and will have an attractive growth profile with three DFS-stage development projects and an exciting near-term brownfield expansion opportunity at NAL.”
Lucas Dow will lead MergeCo as chief executive and Keith Phillips will stay on as strategic advisor for up to six months.
The deal has been unanimously approved by both the Sayona and Piedmont Lithium Boards and is expected to close in the first half of 2025, pending shareholder and international regulatory approvals.
Lithium prices have come under pressure the last two years as many lithium players grapple with unprofitable projects, with hopes the market will rebound in line with EV demand. However, with President-elect Trump’s rhetoric on anti-ESG policies and plans to scrap Biden’s EV tax credit, the timing of the lithium market recovery still remains uncertain.