Emerging lithium miner Sayona Mining Limited (ASX: SYA) welcomed today recent announcements demonstrating the development of a North American supply chain for the battery sector, highlighted by leading EV maker Tesla's supply agreement for spodumene and other key battery metals.
On 28 September, Piedmont Lithium (ASX:PLL) announced it had entered into a binding agreement with Tesla Inc. to supply spodumene concentrate from Piedmont's North Carolina deposit to Tesla, with deliveries scheduled from 2022 23. Piedmont plans to produce lithium hydroxide in North Carolina, using both internally produced spodumene concentrate as well as material sourced from other producers.
Sayona's Managing Director, Brett Lynch said the agreement was a major milestone for the North American battery sector and regional spodumene suppliers including Sayona.
'Tesla is developing a North American supply chain with its agreement to source local supplies of spodumene together with potentially nickel and other key battery metals. Importantly, spodumene has been confirmed asthe preferred feedstock for itslithium hydroxide, with Tesla also building its own lithium hydroxide plant in Texas,' he said.
'For Sayona, these moves are significant as they reinforce Quebec's position as one of the most economical, environmentally sustainable and strategic suppliers of spodumene to the North American battery market.'
Analysts Benchmark Mineral Intelligence (BMI) have estimated the global lithium ion battery market with 167 battery factories will reach 2.7 terawatt hour (TWh) in 2030, compared to the current 210 to 220 GWh. Tesla itself aims for 3 TWh of battery capacity by the end of the decade, indicating the significant demand growth compared to current supply, particularly within North America.
Commenting on Tesla's announcements, BMI said it had made 'the first move by an automotive company into lithium chemical production,' which could spur similar moves by rival EV and battery makers.
The move by Tesla follows the Canadian and Ontario governments' support for EV production in Ontario, with the governments partnering with Ford Motor Co. to invest C$1.95 billion (A$2 billion) to help produce five EVs as well as battery assembly (refer Sayona's ASX announcement, 24 September 2020).
Ranked the world's 10th largest in 2016 with production of 1.3 million vehicles, the Canadian auto industry also includes Fiat Chrysler and General Motors, with most production exported to the United States.
The Quebec Government has also projected investments of up to C$7 billion in developing its own battery sector, from mining to manufacturing, including the restructuring of Nemaska Lithium.
Meanwhile, Sayona's plans to develop a lithium hub in Abitibi, Quebec capable of supplying both the Canadian and U.S. battery markets are nearing conclusion. At Authier, the Company is finalising environmental studies, targeting completion by year end for submission under the 'BAPE' process, while Sayona also sees further potential from its recently expanded Tansim Lithium Project.
Sayona has enhanced its mine plan for a combined Authier and NAL operation, which indicates further significant economic benefits from the turnaround. Concerning Sayona's bid for NAL, monitor Raymond Chabot Grant Thornton has requested a further extension to the end of October, which Sayona has accepted.
Mr Lynch added: 'The North American battery market is growing rapidly and Sayona intends to seize this opportunity. We are swiftly advancing our Authier project, which combined with NAL offers an accelerated pathway to deliver the required quantities of spodumene to supply this fast growing industry.
'In view of this increased demand we have also expanded our Tansim Project, giving Sayona the ability to create a world class lithium hub for North America.'
Contact:
Brett Lynch
Tel: +61 (7) 3369 7058
Email: info@sayonamining.com.au
About Sayona Mining
Sayona Mining Limited is an emerging lithium miner (ASX:SYA), with projects in Quebec, Canada and Western Australia. In Quebec, Sayona is progressing a bid for the North American Lithium mine with the backing of a world class support team, while advancing its flagship Authier Lithium Project and its nearby Tansim project. In Western Australia, the Company has an earn in agreement with leading lithium producer Altura Mining concerning its lithium and gold exploration portfolio in the Pilbara.
SAYONA MINING LIMITED 
