Piedmont Lithium to Issue U.S. Shares as Tesla Drives Interest

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Piedmont Lithium Ltd., which recently struck a five-year raw-materials pact with Tesla to develop a lithium project in North Carolina, is issuing shares in the U.S. as attention in the battery materials space grows.

The Perth, Australia-based company said it will offer 1.5 million American Depositary Shares, with each representing 100 of its ordinary shares, according to a regulatory filing.

“Proceeds from the offering will be used to continue development of the Company’s Piedmont Lithium Project, including a definitive feasibility study, testwork, permitting, further exploration drilling and ongoing land consolidation, and for general corporate purposes,” the company said in the filing.

Piedmont said in September that it will supply spodumene concentrate, a lithium raw material, to Tesla equating to about one-third of the miner’s planned supply for an initial five years. The announcement came after Tesla’s so-called battery day, during which the electric-car producer laid out plans to ramp up battery production as it churns out more automobiles to meet a coming surge in demand.

©2020 Bloomberg L.P.

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