Piedmont Lithium and Sayona Mining Announce Merger to Form Elevra Lithium
Piedmont Lithium and Sayona Mining Limited have announced a definitive agreement to merge, creating a new entity named Elevra Lithium. This strategic all-stock transaction aims to establish a leading North American lithium producer, consolidating assets and expertise to meet the growing demand for lithium in the electric vehicle (EV) sector.Piedmont LithiumReuters
Merger Overview
The merger, announced on November 19, 2024, is structured as an all-stock transaction, with Sayona becoming the parent entity. Shareholders of Piedmont and Sayona will each hold approximately 50% of the combined company on a fully diluted basis immediately post-merger. The combined entity will have a pro-forma market capitalization of approximately $623 million. ReutersPiedmont Lithium
The merger is expected to close in the first half of 2025, subject to shareholder approvals, regulatory clearances, and other customary conditions. Piedmont Lithium
Formation of Elevra Lithium
Upon completion of the merger, the combined company will be renamed Elevra Lithium. Further details regarding the new brand and logo will be provided closer to the transaction’s completion.
Board Composition and Leadership
The Board of Directors of Elevra Lithium will consist of eight members, with equal representation from both Piedmont and Sayona. Dawne Hickton, a nominee from Piedmont, has been designated as the Chair of the Board. Lucas Dow, the current Managing Director and CEO of Sayona, will serve as the CEO and Managing Director of Elevra Lithium. Keith Phillips, Piedmont’s current CEO, will retire from his position and serve as a Strategic Advisor to Elevra Lithium for a transition period following the merger. Piedmont Lithium
Strategic Rationale
The merger aims to create a leading North American hard rock lithium producer with a diversified asset base, including the North American Lithium (NAL) project in Quebec, the Ewoyaa project in Ghana, and the Carolina Lithium project in the United States. The combined entity will benefit from simplified corporate structures, optimized logistics, and enhanced strategic flexibility to meet the increasing demand for lithium products. Piedmont Lithium+1Proactiveinvestors NA+1
Financial Considerations
As part of the merger, the companies plan to undertake equity raisings totaling approximately US$99 million to support growth initiatives. This includes a conditional placement of A$69 million to Resource Capital Fund VIII L.P. (RCF VIII), subject to the completion of the merger and shareholder approvals. Reuters+2Piedmont Lithium+2PR Distribution & Investor Relations+2
Market Context
The merger comes at a time when the lithium market is experiencing volatility due to rapid supply growth and slower-than-expected EV adoption. Analysts anticipate continued pressure on lithium prices into 2025. The consolidation aims to position Elevra Lithium to navigate these challenges effectively and capitalize on long-term growth opportunities in the EV and energy storage sectors. Reuters+1Reuters+1Reuters
Next Steps
Piedmont and Sayona shareholders will receive detailed information about the merger in the coming months, including proxy statements and notices of meetings to seek necessary approvals. The companies are working towards completing the transaction in the first half of 2025, subject to the fulfillment of all closing conditions.
