Piedmont Lithium lays off 27% of workforce amid weak prices (updated)

Elevra Lithium

06/02/2024 12:50

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       Feb 6 (Reuters) - U.S. miner Piedmont Lithium  PLL.O 
said on Tuesday it recently completed a 27% reduction in its
workforce as part of a cost-cutting plan, amid a decline in the
price of lithium.
    The company said it expects to complete the majority of its
cost saving initiatives by the end of the first quarter and aims
to achieve about $10 million in annual savings. It had 40
employees as of Dec. 31, 2022. 
        In January, larger rival Albemarle had announced its
intention to cut jobs and halt expansion in response to
declining prices for the metal used in electric vehicle
batteries.
  
        “These cost reduction actions, while difficult, are
necessary to position the company for the long-term. Lithium
prices have fallen sharply, and the market consensus is
currently negative," CEO Keith Phillips said in a statement. 
  
        The global supply of the metal has outpaced demand from
the battery market over the last year, resulting in an 81%
decline in prices, according to Benchmark Mineral Intelligence.
  
        Piedmont said on Tuesday it has provided additional
information to North Carolina regulators to obtain a
long-delayed mining permit and that a decision is expected in
the coming weeks. 
  
        The company has also invested in Quebec-focused Sayona
Mining  SYA.AX  and Ghana-focused Atlantic Lithium  A11.AX ,
securing access to lithium from both companies.
  
        
  
        
  
    
     
    

 (Reporting by Sourasis Bose in Bengaluru; Editing by Savio
D'Souza and Dhanya Ann Thoppil)
 ((Sourasis.Bose@thomsonreuters.com;))