Merger Creates North America’s Largest Hard-Rock Lithium Producer

Australia’s Sayona Mining has announced plans to acquire US-based Piedmont Lithium in an all-stock transaction that will consolidate their operations in Canada and expand their presence in the rapidly growing North American electric vehicle (EV) market. 

According to a statement from the companies, the merger will form the largest producer of hard-rock lithium in North America, positioning the newly combined entity to capitalize on the rising demand for lithium in the EV sector.

The deal, which brings together the two companies’ interests in the North American Lithium (NAL) project in Quebec’s Abitibi region, is expected to streamline operations and enhance growth opportunities. Both companies emphasized that the merger would help reduce operating costs and improve the efficiency of lithium sales and shipping across the region.

Following the merger, Sayona will take the lead as the parent company of the new lithium producer. The transaction, structured as an all-share deal, reflects a 6% premium over Piedmont’s share price as of Monday’s market close.

The combined entity will have a pro-forma market capitalization of approximately $623 million, with shareholders from both companies holding roughly equal stakes. The new company will be headquartered in Australia, with its primary listing on the Australian Stock Exchange (ASX) and a secondary listing of American depositary shares on the Nasdaq.

Sayona CEO Lucas Dow, who will continue as the chief executive of the merged business, described the merger as a “transformative step” for both companies. “This merger creates a leading North American lithium producer with the scale and capabilities to meet the growing demand for lithium products,” Dow said in the statement.

The merger is set to enhance the companies’ ability to navigate economic cycles and expand their footprint in the North American lithium market.

Source: Mining