Piedmont Lithium withdraws DOE loan application

Piedmont Lithium has cancelled its application with the US Department of Energy’s (DOE) Loan Programs Office, citing high costs. The decision comes as the company faces an 83% decline in lithium prices over the past year, prompting a need to preserve cash flow.

The company recently scrapped plans for a lithium processing facility in Tennessee, despite receiving a $141.7 million government grant. Piedmont is now seeking debt financing for 65% to 75% of the $1 billion cost of its North Carolina lithium project. CEO Keith Phillips indicated there is no rush to move forward with the DOE loan application due to current market conditions and has delayed development timelines for the North Carolina project.

Since last October, Piedmont has spent $1.9 million on application costs for DOE loans and has reduced its workforce by a third in 2024. The company has also been selling its shares in Atlantic Lithium, where it is the second-largest shareholder, to maintain cash reserves.