How Elevra Lithium’s Merger Propels North America’s Lithium Ambitions
Elevra Lithium finalizes merger of Piedmont and Sayona, creating North America’s largest hard-rock lithium producer with a combined resource base of 229Mt. The company outlines ambitious growth plans, operational efficiencies, and a strengthened financial position to capitalize on rising lithium demand.
- Merger creates a leading North American hard-rock lithium producer
- Combined mineral resources total 229Mt at ~1.15% Li2O
- Significant resource and reserve upgrades at North American Lithium and Moblan projects
- Brownfield expansion to increase spodumene concentrate production to 315 ktpa
- Strong balance sheet with A$227 million cash and disciplined funding strategy
Merger Creates a Lithium Giant
Elevra Lithium has officially completed the merger between Piedmont Lithium and Sayona Mining, marking a pivotal moment in North America’s lithium sector. The combined entity now stands as the continent’s largest hard-rock lithium producer, boasting a substantial resource base of 229 million tonnes at an average grade of approximately 1.15% lithium oxide (Li2O). This consolidation not only enhances scale but also strengthens the company’s strategic relevance in the global battery and electric vehicle (EV) supply chains.
Resource Growth and Operational Excellence
Key projects underpinning Elevra’s growth include the North American Lithium (NAL) and Moblan assets, both of which have seen significant resource and reserve upgrades. NAL’s mineral resource increased by 8% to 95Mt, with reserves more than doubling since the last estimate, while Moblan’s resource surged by 30% to 121Mt. Operationally, Elevra reported record spodumene concentrate production of 205,000 dry metric tonnes in FY25, a 31% increase year-on-year, alongside improved recovery rates and mill utilisation reaching 93%.
Strategic Growth and Brownfield Expansion
Elevra is advancing a brownfield expansion at NAL, targeting a production increase from 195-210 ktpa to 315 ktpa of spodumene concentrate. The expansion is supported by a scoping study indicating strong economics, including a reduction in unit cash costs to US$562 per tonne and an estimated post-tax net present value of US$950 million. The project benefits from existing permits and infrastructure, promising a streamlined development pathway with construction anticipated to commence around 2028 and ramp-up by 2030.
Financial Strength and Funding Strategy
With a pro-forma cash position of approximately A$227 million as of June 2025, Elevra is well capitalized to execute its growth plans. The company emphasizes a disciplined capital allocation approach, focusing on non-dilutive funding options such as secured loans and strategic partnerships to support its development pipeline. Existing offtake agreements with major battery manufacturers like Tesla and LG Chem remain intact, underpinning stable demand for its spodumene concentrate.
Looking Ahead
Elevra’s strategy centers on optimising existing operations, developing assets aligned with its expanded resource base, and integrating vertically into the lithium supply chain through strategic partnerships. The company’s FY26 guidance projects spodumene concentrate production between 195,000 and 210,000 dry metric tonnes, with unit operating costs expected in the range of A$1,175 to A$1,275 per tonne sold. As global lithium demand continues its upward trajectory, Elevra is positioning itself to play a critical role in powering the clean energy transition.
Bottom Line?
Elevra Lithium’s merger and growth strategy set the stage for North American leadership in lithium supply amid rising EV demand.
Questions in the middle?
- How will Elevra navigate permitting and regulatory hurdles for its brownfield expansion?
- What are the prospects and timing for downstream integration and strategic partnerships?
- How sensitive is Elevra’s growth plan to lithium market price fluctuations and capital availability?