Australia’s Sayona Mining on Tuesday announced an all-stock merger with US-based Piedmont Lithium, forming the largest hard rock lithium producer in North America.

The merger is designed to create a more resilient company, better positioned to navigate the challenges currently facing the lithium industry.

Following the merger, Sayona will become the ultimate parent company of the combined entity, which will be domiciled in Australia. The company will have a primary listing on the ASX and a secondary listing on Nasdaq.

Sayona CEO and MD Lucas Dow will continue in his role post-merger, while Piedmont CEO Keith Phillips will serve as a strategic adviser to the merged company for up to six months.

"We are excited about the opportunities this merger presents to accelerate our growth plans and enhance our strategic flexibility," said Dow.

Phillips added that the combined entity would have an attractive growth profile, including three definitive feasibility study-stage development projects and a promising near-term expansion opportunity at North American Lithium (NAL) in Quebec, Canada.

NAL is currently jointly owned by Sayona and Piedmont. In addition, Piedmont is advancing the Carolina project in North Carolina, US, and is developing spodumene assets in Ghana in partnership with ASX-listed Atlantic Lithium. Sayona also holds lithium assets in Australia.

As part of the transaction, the two companies plan to raise up to A$149-million through several initiatives, including two separate placements of A$40-million each by Sayona and Piedmont, as well as a conditional A$69-million placement to RCF VIII.

“The merger financing, corner-stoned by leading mining private equity group RCF, will enable us to weather the current industry downturn while making intelligent investments in our growth projects to be positioned for the recovery in lithium markets that we expect in the medium-term,” said Phillips.

The transaction comes at a time when the lithium market is grappling with oversupply, as rapid production growth has outpaced the demand forecast, partly owing to slower-than-expected adoption of electric vehicles.

The merged business would have a combined lithium ore reserve estimate totalling 70.4-million tonnes at 1.15% lithium oxide and a mineral resource estimate of 153.5-million tonnes at 1.15% and 51.4-million tonnes at 1.07%.

The merger is subject to shareholder approval for both companies and is expected to close in the first half of calendar year 2025.