Piedmont Lithium announced a significant workforce reduction of 27% to curb costs, with plans to save around $10 million annually on 6 February. This move comes as lithium prices saw an 80% drop from late 2022 highs, prompting the company to adjust its strategy for long-term operational sustainability.
Piedmont Lithium currently has a joint operation called North American Lithium (NAL) in Canada with Sayona Mining who has announced a strategic review on the operation earlier on 25 January. It also has the Ewoyaa project in Ghana with Atlantic Lithium who recently received a US$5 million strategic investment from Ghana government for the project. Piedmont also has a North Carolina venture in the US, aiming to become one of the lowest-cost lithium hydroxide producers.
In the announcement, Piedmont states that it intends to reduce capital spending in 2024 and control operating expenses, which drives a recently completed 27% reduction in workforce. It expects to complete most of its cost savings initiatives by the end of Q1 2024 and sees approximately $10 million in annual savings.
Despite Piedmont’s lithium assets being geographically diversified, and cost-saving measures being taken, as these assets still require relatively intensive capital input at this time, the profitability will inherently remain contingent upon lithium prices.