Piedmont Lithium has completed a 27% reduction in its workforce as part of the company’s cost-cutting measures amid a decline in lithium prices.

The American lithium mining company completed 2023 with cash of $72m and currently it holds about $38m in marketable securities.

Piedmont Lithium also aims to reduce its capital spending this year and control operating expenses through expense management.

Besides, the firm intends to complete the majority of its cost savings initiatives by the end of Q1 2024. It is also targeting annual run rate savings of approximately $10m.

The announcement came as part of the lithium resources’ supplier’s update on key business and portfolio activities.

Piedmont Lithium CEO and president Keith Phillips said: “These cost reduction actions, while difficult, are necessary to position the Company for the long-term. Lithium prices have fallen sharply, and the market consensus is currently negative.

“However, lithium has been a cyclical business over the past decade with trough markets in pricing generally followed by new record highs.

“As they say in the mining business, ‘the solution to low prices is low prices,’ and announcements of capacity curtailments and new project deferrals have recently become commonplace with more likely to come.”

According to Piedmont Lithium, its Canadian joint venture (JV) mining operation North American Lithium produced 34,237 dry metric tons of spodumene concentrate in Q4 2023. This represents a 9% increase in production from the prior quarter.

The other partner of North American Lithium JV is Sayona Mining.

Besides, the company stated that the construction at the Ewoyaa lithium project in Ghana is scheduled to begin in 2025 following receipt of the necessary permits and approvals, which are anticipated later this year.

In July last year, Piedmont Lithium secured the final permit required to begin construction on its proposed Tennessee lithium project in McMinn County, Tennessee.