Elevra Lithium has completed a transformative merger and maintained robust production at its North American Lithium operation, while unveiling a compelling expansion plan that could boost output by 55% and slash costs.
- Successful merger of Sayona Mining and Piedmont Lithium completed
- North American Lithium (NAL) delivers strong production with improved safety
- NAL Expansion Scoping Study projects 55% production increase and 30% cost reduction
- Moblan resource estimate grows by 30%, advancing development potential
- Company raises $69 million and ends quarter with $148.8 million cash balance
A Transformational Merger Sets the Stage
Elevra Lithium Limited emerged this quarter from the successful merger of Sayona Mining Limited and Piedmont Lithium Inc., a deal that garnered overwhelming shareholder support and was finalized on 30 August 2025. The merger not only consolidated two significant players in the lithium sector but also rebranded the combined entity as Elevra Lithium, accompanied by a 150-to-1 share consolidation to streamline its capital structure. This strategic move positions Elevra as a leading North American hard-rock lithium producer with a diversified portfolio and a unified development strategy.
Operational Resilience at North American Lithium
Despite some planned and unplanned downtime, Elevra’s flagship North American Lithium (NAL) operation in Québec delivered solid results. Ore mined was slightly down 7% quarter-on-quarter to 338,341 wet metric tonnes, aligning with mill production. The plant maintained a strong 87% utilisation rate, and spodumene concentrate production reached 52,003 dry metric tonnes, marking the third-best quarterly output since operations resumed in 2023. Importantly, safety performance improved markedly, with the best record since restart and five consecutive months without lost time injuries, underscoring the company’s commitment to operational discipline and workforce wellbeing.
Expansion Plans Signal Significant Growth
The recently released NAL Expansion Scoping Study outlines a compelling growth pathway, proposing a 55% increase in annual spodumene concentrate production from 200,000 to 315,000 tonnes. This expansion is expected to reduce unit operating costs by approximately 30%, down to US$562 per dry metric tonne, driven by capital-efficient brownfield development with an estimated capital cost of US$270 million. The study projects a robust post-tax net present value of C$1.28 billion and an internal rate of return of 26.4%, highlighting the economic attractiveness of scaling up NAL’s operations. Environmental baseline studies are underway, with a Final Investment Decision targeted for the second half of 2027 and first production anticipated in 2029.
Resource Growth and Project Advancements
Complementing NAL’s expansion, Elevra reported a 30% increase in the JORC-compliant Mineral Resource Estimate for the Moblan Lithium Project, now totaling 121 million tonnes at 1.19% lithium oxide. This significant upgrade reinforces Moblan’s status as one of North America’s largest hard-rock lithium deposits and strengthens the company’s long-term development pipeline. Meanwhile, progress continues on the Ewoyaa project in Ghana, with ongoing negotiations on mining lease fiscal terms pending parliamentary ratification, and on the Carolina Lithium project in North Carolina, where permitting advances amid a supportive U.S. policy environment for critical minerals.
Financial Strength and Market Positioning
Elevra’s financial position was bolstered by a $69 million placement to Resource Capital Fund VIII, L.P., alongside $52 million in cash acquired from Piedmont at merger close, lifting the group’s cash balance to $148.8 million by quarter-end. The company reaffirmed its FY26 guidance, targeting spodumene concentrate production and sales between 195,000 and 210,000 dry metric tonnes, with unit operating costs expected to range between $1,175 and $1,275 per tonne sold. Notably, the average realised selling price increased 14% quarter-on-quarter to $1,198 per dry metric tonne, reflecting improved market conditions and strategic forward sales arrangements designed to capitalise on higher prices.
Bottom Line?
Elevra Lithium’s merger and operational momentum set a strong foundation, but execution of its ambitious expansion and regulatory approvals will be critical to sustaining growth.
Questions in the middle?
- How will Elevra manage potential risks associated with unplanned downtime at NAL going forward?
- What are the timelines and likelihood for finalizing the Ewoyaa mining lease ratification and project financing?
- How might evolving U.S. policies on critical minerals impact the permitting and development pace of Carolina Lithium?