Sayona Mining (ASX:SYA) and Piedmont Lithium (ASX:PLL) announced an all-stock merger to create North America’s largest hard rock lithium producer. The transaction will see the two companies combine their resources and create a new entity, MergeCo, with a 50/50 ownership split immediately after the transaction.

The merger is intended to simplify the corporate structure, improve the economics of both companies’ North American lithium (NAL) operations, and accelerate growth projects. Key synergies include optimized logistics, procurement and expanded customer relationships.

Under the terms of the merger, Piedmont Lithium shareholders will exchange their shares for Sayona stock. Holders of Piedmont common stock will receive Sayona American Depositary Shares (ADS) equivalent to 527 Sayona common shares for each Piedmont share. Meanwhile, Piedmont CHESS Depositary Interest (CDI) holders will receive 5.27 shares of Sayona common stock for each CDI share they own. As a result of these transactions, Piedmont shareholders will jointly own 50% of the newly formed MergeCo, with the remainder owned by Sayona shareholders.

“This merger represents a transformational step, creating one of North America’s leading lithium producers with the scale and capacity to meet growing demand,” said Lucas Dow, CEO of Sayona. Keith Phillips, CEO of Piedmont Lithium, added: “This merger brings together two complementary businesses and allows us to invest in the recovery of the lithium market.”

Headquartered in Brisbane, Australia, Sayona Mining is focused on lithium mining and exploration, with projects in Quebec, Canada and Western Australia. Its flagship North American lithium operations in Quebec are complemented by projects such as Autier and Tansim.

Piedmont Lithium, based in Belmont, North Carolina, develops lithium resources primarily in the United States. The company’s Carolina lithium project is a key asset in the fast-growing electric vehicle supply chain, and Piedmont also holds interests in lithium projects in Canada and Ghana.

MergeCo will have an extensive portfolio of lithium resources with total reserves and resources of 275 million tonnes across multiple sites. The consolidated entities plan to leverage their significant resource base for future expansion and optimize their downstream strategies. The merger will also strengthen the balance sheet through capital raising totaling A$149 million, securing funding for future projects including a potential brownfield expansion for NAL.

The merger is expected to close in the first half of 2025, subject to shareholder and regulatory approval. MergeCo will maintain its primary listing on the ASX while maintaining its secondary listing on Nasdaq.