Australian lithium chemicals company Piedmont Lithium has announced its decision to begin issuing company shares in the United States.
This news comes as interest in the company has grown following its decision to enter into a five-year raw-materials pact with Tesla, with the intention of developing a lithium project in North Carolina.
Piedmont decided to offer 1.5 million American Depositary Shares, each of which represents 100 of the company’s ordinary shares.
Piedmont released the following statement to accompany its 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.”
Following the pact between Piedmont Lithium and Tesla, the former revealed in September that it would supply spodumene concentrate (a lithium raw material) to Tesla at a volume that will equal approximately one-third of the miners’ planned supply throughout the initial five years.
This announcement, along with the decision to issue shares in the U.S., was influenced by Tesla’s decision on battery day to release plans that would see battery manufacturing be ramped up as automobile production also enjoys a sharp increase.
