Sayona Mining and Piedmont Lithium Merger to Create North America’s Largest Lithium Producer

Strategic Merger to Form a Leading Lithium Producer
Sayona Mining, an Australian mining company, has finalized an agreement to merge with U.S.-based Piedmont Lithium in an all-stock deal aimed at creating the largest producer of hard rock lithium in North America. The merger is valued at a pro-forma market capitalization of $623 million, with both companies expected to hold equal equity stakes in the new entity. The combined company will be headquartered in Australia, with listings on the Australian Securities Exchange (ASX) and Nasdaq.

Shareholder Terms and Ownership Distribution
Under the merger agreement, Piedmont Lithium shareholders will receive Sayona Mining’s American depository shares (ADSs) equivalent to 527 Sayona shares for each Piedmont share. Additionally, Piedmont’s CHESS depository interests (CDIs) holders will receive 5.27 Sayona shares listed on the ASX for each CDI. Post-merger, shareholders of both companies will each own approximately 50% of the new entity, reinforcing the strategic partnership between Sayona and Piedmont.

Capital Raising to Support Lithium Projects and Expansion
As part of the merger, Piedmont Lithium will raise $27 million to advance its Ewoyaa and Carolina lithium projects, focusing on permitting and development activities. Sayona Mining will similarly raise around $27 million to support its North American Lithium (NAL) operations. The NAL project, which is a joint venture between the two companies, will benefit from this capital raising, with efforts to optimize production and pursue brownfield expansion opportunities. The merger will streamline offtake agreements and simplify contractual complexities at NAL, contributing to its long-term growth.

Growth Potential and Strategic Focus on Lithium Supply Chain
The merger significantly enhances the combined company’s growth prospects, with three development-stage lithium projects and a large expansion opportunity at NAL. Sayona and Piedmont aim to become a dominant force in the lithium supply chain, catering to the rising demand for lithium in the electric vehicle (EV) and renewable energy sectors. The new entity will focus on building a robust and scalable operation that can meet the growing global need for lithium for battery production.

Leadership Statements on the Deal
Lucas Dow, CEO of Sayona Mining, described the merger as a transformative step, positioning the company as a major player in North America’s lithium industry. Piedmont Lithium’s CEO, Keith Phillips, emphasized that the merger will create a stronger company, combining the strengths of both firms to maximize their growth potential in the lithium market.

Regulatory Approval and Expected Timeline
The merger has received unanimous approval from the boards of both companies. It is expected to be finalized by the first half of 2025, pending shareholder and regulatory approvals.