Piedmont Lithium (PLL) has canceled its application with the US Department of Energy’s Loan Programs Office. High costs have prompted this decision, as the company navigates a sharp 83% drop in lithium prices over the past year.

The company had initially secured approval for a $141.7 million government grant for a Tennessee facility. However, it now seeks debt financing for 65%-75% of a $1 billion North Carolina project.

Focus on Financial Preservation

CEO Keith Phillips stated that there is no rush to proceed with the LPO application under current market conditions. Instead, the company aims to maintain financial discipline and carefully manage its cash flow.

Impact on Operations

Ongoing operational adjustments include reducing the workforce by nearly one-third in 2024. Piedmont also divested shares in Atlantic Lithium to bolster cash reserves. The CEO has informed investors that the timeline for the North Carolina site remains uncertain.

Strategic Moves amidst Market Changes

Since last October, Piedmont incurred $1.9 million in DOE-related application costs. Despite challenges, they remain committed to optimizing their financial management strategies.

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