Sayona Mining (ASX: SYA) and Piedmont Lithium (NASDAQ: PLL; ASX: PLL) are making waves in the lithium industry with their planned merger, creating what could become North America’s leading hard-rock lithium producer. The proposed all-stock transaction, expected to close in the first half of 2025, unifies the two companies under a new entity provisionally dubbed "MergeCo." With a combined resource base and operational synergies, the merger positions MergeCo as a cornerstone of the electric vehicle (EV) supply chain, driving the continent’s lithium ambitions forward.
North American's only operating spodumene plant | Credit: Sayona
The merger will consolidate Sayona and Piedmont’s overlapping interests, particularly in Québec’s North American Lithium (NAL) project, the Authier project, and other significant lithium ventures. Shareholders of both companies will share ownership of MergeCo on an approximately 50/50 basis, prior to an A$149 million equity raising plan aimed at strengthening the new entity’s balance sheet.
The unified corporate structure will:
“This merger marks a transformative milestone for our companies, enabling us to streamline operations and better serve the growing lithium market,” said Lucas Dow, Sayona’s Managing Director and the future CEO of MergeCo.
The merger creates a heavyweight in the lithium sector, boasting a combined reserve estimate of 70.4 million tonnes at 1.15% Li₂O, alongside measured and indicated mineral resources totalling 153.5 million tonnes at 1.15% Li₂O. This resource base underpins three development projects in Canada and the United States, with the NAL facility as its crown jewel.
The brownfield potential at NAL is particularly noteworthy, with studies already underway to evaluate expansion opportunities. Brownfield projects offer significant advantages in terms of lower capital intensity and faster permitting timelines compared to greenfield developments, giving MergeCo a competitive edge.
Keith Phillips, Piedmont’s President and CEO, highlighted the strategic importance of the merger: “The combination of Sayona and Piedmont creates a strong foundation for growth. MergeCo will have the resources and flexibility to navigate the current market downturn and invest strategically for the future”.
MergeCo’s financial muscle will be bolstered by an ambitious A$149 million equity raising effort, including:
The funding strategy reflects a proactive approach to navigating the current lithium market downturn, with leadership betting on a strong recovery in the medium term. These funds will be critical in advancing the company's three DFS-stage projects and pursuing brownfield expansions.
By merging their overlapping stakes, Sayona and Piedmont aim to optimise logistics, procurement, and marketing efforts, reducing operational costs while improving scalability. These efficiencies, combined with their complementary geographic footprints in Canada and the United States, position MergeCo as a truly North American lithium powerhouse.
The restructured entity will have a global presence with:
Post-merger governance will include a balanced board of eight directors, with equal representation from both companies. Lucas Dow will serve as CEO, while Keith Phillips transitions to a strategic advisory role during the integration period.
The merger’s timing couldn’t be more critical. As North America seeks to establish a secure, domestic supply chain for critical minerals, MergeCo is positioned to play a leading role. The U.S. Inflation Reduction Act has already provided significant tailwinds for EV and battery supply chains, and MergeCo’s assets are strategically located to tap into this burgeoning market.
With the global EV market projected to grow exponentially, demand for lithium is set to rise sharply. MergeCo’s resource-rich portfolio and vertically integrated strategy give it the capacity to scale rapidly, providing a reliable source of battery-grade lithium for automakers and battery producers.
The merger is subject to shareholder and regulatory approvals, with both companies’ boards unanimously recommending the deal. Sayona has scheduled an extraordinary general meeting in early 2025 to secure shareholder backing for the transaction, with Piedmont following suit for its investors.
Assuming the deal closes as planned, MergeCo will emerge as a dominant force in the North American lithium market. The unified company will prioritise:
The Sayona-Piedmont merger signals a bold step forward in North America’s quest for lithium self-sufficiency. While the market faces short-term volatility, the long-term outlook for lithium remains robust, buoyed by the global push for EVs and renewable energy storage solutions.
For investors and stakeholders, MergeCo represents a rare opportunity: a homegrown lithium leader with the scale, resources, and strategic focus to thrive in a fast-evolving market. As the dust settles on this landmark deal, all eyes will be on MergeCo to deliver on its promises and cement its place at the heart of North America’s energy transition.