PIEDMONT LITHIUM INC. – 10 KT OF OPERATIONS.

The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with our financial statements and
related notes included elsewhere in our Transition Report. The following
discussion contains forward-looking statements that reflect our plans, estimates
and beliefs. Our actual results could differ materially from those discussed in
the forward-looking statements. Factors that could cause or contribute to these
differences include those discussed below and elsewhere in our Transition
Report, particularly those in the sections entitled "Risk Factors," "Cautionary
Note Regarding Forward-Looking Statements," and "Cautionary Note Regarding
Disclosure of Mineral Properties."

This management's discussion and analysis is a supplement to our financial
statements (including notes) referenced elsewhere in our Transition Report and
is provided to enhance your understanding of our operations and financial
condition. This discussion is presented in millions and due to rounding may not
sum or calculate precisely to the totals and percentages provided in the tables.

Executive Overview

Piedmont Lithium Inc. is a development stage company developing a multi-asset,
integrated lithium business contributing to the transition to a net zero carbon
world and the creation of a clean energy economy in North America. Through this
endeavor, we are focused on developing and manufacturing lithium products for
the fast-growing electric vehicle industry. The centerpiece of our operations,
our wholly-owned Carolina Lithium Project, is in the development stage as of the
issuance of our BFS on December 14, 2021, and is located in the renowned
Carolina Tin-Spodumene Belt of North Carolina. We are geographically diversified
with equity investments in strategic partnerships that own lithium resource
assets in Canada and Ghana. Collectively, these resource assets and the location
of these assets in the U.S., Canada and Ghana, strategically position us to be a
large, low-cost, sustainable producer of lithium products, serving the North
American electric vehicle and battery supply chains. The geology, geography and
proximity of our resources, planned production operations and customer base,
should allow us to deliver a valuable supply of high-quality, sustainably
produced lithium hydroxide from spodumene concentrate, which is preferred by
most U.S. electric vehicle manufacturers. Our diversified operations should
enable us to play a pivotal role in supporting the move toward decarbonization
and the electrification of transportation and energy storage.

Highlights of the half-year ended December 31, 2021

•In December 2021, we announced the completion of a BFS for our Carolina Lithium
Project, which included an initial estimation of 18.3 million metric tons of
probable ore reserves at a grade of 1.10% Li2O. The BFS demonstrated robust
project economics with the potential of the Carolina Lithium Project to be a low
cost producer of battery quality lithium hydroxide. The study results included
an estimated $2 billion project NPV8 and a first quartile cash cost position for
lithium hydroxide production.

•In December 2021, we submitted a loan application to the Loan Programs Office
of the U.S. Department of Energy for potential funding of program eligible
capital costs, including but not limited to, a spodumene concentrator plant and
lithium hydroxide conversion facilities associated with the Carolina Lithium
Project. We cannot be certain that our loan application will be approved or will
have terms acceptable to us.

•In August 2021, we have submitted an application for a mining permit to the DEMLR of the NCDEQ. The evaluation of our mining permit application is in progress.

•In August 2021, Sayona Quebec successfully completed the acquisition of North
American Lithium, an existing spodumene mine currently in care and maintenance
located near Val-d'Or, Quebec.

•In August 2021, we entered into a strategic partnership with Atlantic Lithium,
which included an equity interest of approximately 10% Atlantic Lithium Limited
(formerly Iron Ridge Resources), a supply agreement for spodumene concentrate,
and the right to acquire 50% of Atlantic Lithium Ghana through future staged
investments, as discussed above.

Redomiciliation

The Company has acquired all of the issued and outstanding common shares of Piedmont Australia, our Australian predecessor and now a wholly owned subsidiary, pursuant to a Scheme of Arrangement under Australian law, which has been approved by Piedmont shareholders. australia the February 26, 2021 and the
Supreme Court of Western Australia to May 5, 2021

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(collectively referred to as "Redomiciliation"). As part of the Redomiciliation,
we changed our place of domicile from Australia to the State of Delaware in the
U.S., effective May 17, 2021.

Piedmont Australia's ordinary shares were listed on the ASX, and Piedmont
Australia's ADSs, each representing 100 of Piedmont Australia's ordinary shares,
were traded on Nasdaq. Following the approval of the Redomiciliation, we moved
our primary listing from the ASX to Nasdaq and retained an ASX listing via CDIs,
each representing 1/100th of a share of common stock of Piedmont Lithium Inc.

Pursuant to the Redomiciliation, holders of Piedmont Australia's ordinary shares
received one (1) CDI in Piedmont Lithium Inc. for each ordinary share held in
Piedmont Australia on the Redomiciliation record date; and holders of ADSs in
Piedmont Australia, each of which represented 100 ordinary shares of Piedmont
Australia, received one (1) share of common stock in the Company of Piedmont
Lithium Inc. for each ADS held in Piedmont Australia on the Redomiciliation
record date.

All issued and outstanding shares of our common stock and per share amounts have been retroactively adjusted in these consolidated financial statements to reflect the 100:1 ratio and share consolidation.

COVID-19 response

To protect the health and safety of our employees, contractors, visitors and
communities, we implemented a comprehensive plan in response to the COVID-19
pandemic. Our plan included policies and protocols governing issues such as
close contact exposure and contraction of COVID-19 and other communicable
diseases, providing employees with additional personal protective equipment, and
allowing our employees to work remotely. We have provided paid time off for
employees impacted by COVID-19, reimbursed employees for costs associated with
COVID-19 testing, provided time for employees to get vaccinated, and encouraged
flexible work schedules to accommodate personal and family needs. Our business
was not materially impacted by the negative impacts from COVID-19. We will
continue to monitor guidelines and recommendations from the Center for Disease
Control and Prevention (CDC) and the World Health Organization (WHO) as well as
from local, state and federal governments.

Outlook

The demand for electric vehicles continues to accelerate as many jurisdictions
around the world have legislated to shifting new car fleets away from internal
combustion engines and toward electric vehicles. These electric vehicles will
use batteries, nearly all of which are expected to be lithium-based batteries.
Our strategy is to develop resources and processing capabilities that support
the opportunity to meet the demands of our customers across the electric vehicle
supply chain. Car manufacturers have committed significant capital investments
totaling more than $500 billion to expand their electric vehicle portfolios with
targets to electrify their fleets by as much as 100% by 2035. Many of the major
car manufacturers have plans to build facilities in the United States to produce
both lithium-ion batteries and electric vehicles that will require a supply of
lithium products.

Lithium products are expected to experience a supply shortfall in the coming years due to the planned adaptation to electric vehicles, as shown in the graph below:

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                     [[Image Removed: pll-20211231_g4.jpg]]

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Source: Benchmark Mineral Intelligence Q4 forecast – January 2022.

The outlook for global sales of new electric vehicles (units in millions) and
the global penetration rate of new electric vehicles sold compared to total new
vehicles sold are presented in the table below:

                                     2022      2023      2024      2025      2026      2027      2028      2029      2030
Sales of new electric vehicles       9.0       11.3      14.0      16.8      19.7      22.8      26.6      30.6      35.1
Penetration rate                     10%       12%       14%       16%       19%       21%       25%       28%       31%


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Source: Rho Motion Electric Vehicle Battery Outlook at January 2022. Note: The periods in the tables above are calendar year periods.

Components of our operating results

Mining exploration and development costs

We incur costs in resource exploration, evaluation and development during the
different phases of our resource development projects. Exploration costs
incurred before the declaration of proven and probable resources, which
primarily include exploration, drilling, engineering, metallurgical test-work,
and compensation for employees associated with exploration activities, are
expensed as incurred. We have also expensed as incurred engineering costs
attributable to the evaluation of land for our future chemical and concentrator
plants, development project management costs, feasibility studies and other
project expenses that do not qualify for capitalization. After proven and
probable resources are declared, exploration and mine development costs
necessary to bring the property to commercial capacity or increase the capacity
or useful life are capitalized.

General and administrative expenses

General and administrative expenses relate to overhead costs, such as employee
compensation and benefits for corporate management and office staff including
accounting, legal, human resources and other support personnel, professional
service fees, insurance, and costs associated with maintaining our corporate
headquarters. Included in employee compensation costs are cash and stock-based
compensation expenses.

Other (Expense) Income

Other expense (income) consists of interest income (expense) and foreign
currency exchange gain (loss). Interest income consists of interest earned on
our cash and cash equivalents. Interest expense consists of interest incurred on
long-term debt related to noncash acquisitions of mining interests financed by
the seller as well as interest incurred for lease liabilities. Foreign currency
exchange gain (loss) relates to our foreign bank accounts denominated in
Australian dollars.
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Loss from investments in unconsolidated affiliates, net of tax

Loss from equity investments in unconsolidated affiliates, net of tax, reflects
our proportionate share of the net loss resulting from our investments in
Sayona, Sayona Quebec and Atlantic Lithium. These investments are recorded under
the equity method and adjusted each period, on a one-quarter lag, for our share
of each investee's loss.

Results of Operations

Semester completed December 31, 2021 and 2020

                                                        Six Months Ended
                                                          December 31,
                                                 2021               2020 (unaudited)             $ Change               % Change

Mining exploration and development costs $9,628,803 $3,572,166 $6,056,637

               169.6%
General and administrative expenses           10,956,005                  2,174,023              8,781,982               404.0%
Loss from operations                         (20,584,808)                (5,746,189)           (14,838,619)              258.2%
Other expense                                   (121,412)                   (38,649)               (82,763)              214.1%
Loss from equity investments in                 (642,135)                         -               (642,135)                *
unconsolidated affiliates, net of tax
Net loss                                   $ (21,348,355)         $      (5,784,838)         $ (15,563,517)              269.0%


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* Not significant.

Mining exploration and development costs

Exploration and mine development costs increased $6.1 million, or 169.6%, to
$9.6 million in the six months ended December 31, 2021 compared to $3.6 million
in the six months ended December 31, 2020. The increase in exploration and mine
development costs was primarily due to an increase in engineering expenses and,
to a lesser extent, permitting expenses, testing expenses, and employee
compensation expenses related to additional headcount. Employee compensation
expenses included noncash, stock-based compensation expense of $0.7 million and
$0.1 million in the six months ended December 31, 2021 and 2020, respectively.

Partially offsetting the increase in exploration and mine development costs was
a decrease in drilling expenses. Our drilling activities declined leading up to
and following the completion of our S-K 1300 compliant mineral resource estimate
in October 2021.

General and administrative expenses

General and administrative expenses increased $8.8 million, or 404.0%, to $11.0
million in the six months ended December 31, 2021 compared to $2.2 million in
the six months ended December 31, 2020. The increase in general and
administrative expenses was primarily due to an increase in employee
compensation expenses related to additional management and support headcount at
our headquarters in Belmont, North Carolina, professional fees including legal
and accounting services, consulting services, and insurance expense. Employee
compensation expenses included noncash, stock-based compensation expense of $1.3
million and $0.2 million in the six months ended December 31, 2021 and 2020,
respectively.

Other Expense

Other expense was $0.1 million in the six months ended December 31, 2021
compared to less than $0.1 million in the six months ended December 31, 2020.
The slight increase in other expense was due to an increase in foreign currency
exchange loss. Partially offsetting the increase in other expense was a decrease
in interest expense.

Loss from investments in unconsolidated affiliates

Loss from equity investments in unconsolidated affiliates, net of tax, was $0.6
million in the six months ended December 31, 2021 compared to $0 in the six
months ended December 31, 2020. The loss reflects our proportionate share of the
net
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loss resulting from our investments in Sayona, Sayona Quebec and Atlantic Lithium. We had no interests in unconsolidated affiliates in 2020.

Completed exercises June 30, 2021 and 2020

                                                    Years Ended June 30,
                                                 2021                  2020                 $ Change               % Change

Mining exploration and development costs $10,874,502 $3,125,784 $7,748,718

               247.9%
General and administrative expenses            8,861,454             3,440,161              5,421,293               157.6%
Loss from operations                         (19,735,956)           (6,565,945)           (13,170,011)              200.6%
Other (expense) income                          (193,266)              686,793               (880,059)             (128.1)%
Loss from equity investments in                  (64,626)                    -                (64,626)                *
unconsolidated affiliates, net of tax
Net loss                                   $ (19,993,848)         $ (5,879,152)         $ (14,114,696)              240.1%


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* Not significant.

Mining exploration and development costs

Exploration and mine development costs increased $7.7 million, or 247.9%, to
$10.9 million in the year ended June 30, 2021 compared to $3.1 million in the
year ended June 30, 2020. The increase in exploration and mine development costs
was primarily due to an increase in contract labor costs and consulting fees
associated with increased drilling, engineering, and metallurgical testing
activities for our Carolina Lithium Project.

General and administrative expenses

General and administrative expenses increased $5.4 million, or 157.6%, to $8.9
million in the year ended June 30, 2021 compared to $3.4 million in the year
ended June 30, 2020. The increase in general and administrative expenses was
primarily due to an increase in professional and consulting fees, including
legal, accounting, recruiting and other professional costs associated with our
Redomiciliation. Employee compensation expenses also contributed to higher
general and administrative expenses due to the hiring of key management
personnel and support staff at our headquarters in Belmont, North Carolina in
2021. Employee compensation expenses included noncash, stock-based compensation
expense of $0.8 million and $0.3 million in the years ended June 30, 2021 and
2020, respectively.

Other (Expense) Income

Other (expense) income decreased $0.9 millioni.e. 128.1%, at a $0.2 million
expenditure during the financial year ended June 30, 2021 compared to $0.7 million income for the year ended June 30, 2020. The decrease in other income (expense) is explained by foreign exchange gains, a decrease in interest income and an increase in interest expense.

Loss from investments in unconsolidated affiliates

The net loss of investments in unconsolidated affiliated companies was $0.1 million
in the year ended June 30, 2021 compared to zero during the year ended June 30, 2020. The loss was generated by our investment in Sayona. We had no interests in unconsolidated affiliates in 2020.

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Completed exercises June 30, 2020 and 2019

                                                   Years Ended June 30,
                                                2020                  2019                $ Change               % Change

Mining exploration and development costs $3,125,784 $6,381,501 $(3,255,717)

             (51.0)%
General and administrative expenses           3,440,161             3,662,767              (222,606)              (6.1)%
Loss from operations                         (6,565,945)          (10,044,268)            3,478,323              (34.6)%
Other income                                    686,793               362,467               324,326               89.5%

Net loss                                   $ (5,879,152)         $ (9,681,801)         $  3,802,649              (39.3)%

Mining exploration and development costs

Exploration and mine development costs decreased $3.3 million, or 51.0%, to $3.1
million in the year ended June 30, 2020 compared to $6.4 million in the year
ended June 30, 2019. The decrease in exploration and mine development costs was
primarily due to a decrease in drilling expenses associated with a decline in
drilling activities and, to a lesser extent, permitting and engineering expenses
associated with our Carolina Lithium Project.

General and administrative expenses

General and administrative expenses decreased $0.2 million, or 6.1%, to $3.4
million in the year ended June 30, 2020 compared to $3.7 million in the year
ended June 30, 2019. The decrease in general and administrative expenses was
primarily due to a decrease in professional and consulting fees.

Other income

Other income increased $0.3 million, or 89.5%, to $0.7 million in the year ended
June 30, 2020 compared to $0.4 million in the year ended June 30, 2019. The
increase in other income was mainly due to foreign currency exchange gains.
Partially offsetting the increase in other income was a decrease in interest
income and an increase in interest expense.

Cash and capital resources

Overview

As of December 31, 2021, we had cash and cash equivalents of $64.2 million
compared to $142.7 million as of June 30, 2021. As of December 31, 2021, our
cash balances held in the U.S. totaled $58.5 million, or 91.1%, and the
remaining $5.7 million, or 8.9%, of our cash balances were held in Australia. We
have determined that any earnings in Australia would be indefinitely reinvested.
Our cash balances in Australia can be repatriated to the U.S. with
inconsequential tax consequences.

Our predominant source of cash has been generated through equity financing from
issuances of our common stock. We have also entered into noncash seller financed
debt to acquire land for our Carolina Lithium Project. Since our inception, we
have not generated revenues, and as such, have relied on equity financing to
fund our operating and investing activities and to fund our debt payments.

Our primary uses of cash during the six months ended December 31, 2021 consisted
of: (i) strategic equity investments in Sayona of $7.4 million, Sayona Quebec of
$20.2 million primarily for our share of the NAL acquisition, and Atlantic
Lithium of $16.0 million, (ii) purchases of real property and associated mining
interests for our Carolina Lithium Project of $12.5 million, (iii) advances
toward the Ewoyaa Project for exploration and evaluation activities of $4.3
million, and (iv) working capital. As of December 31, 2021, we had working
capital of $59.2 million.

From December 31, 2021we had a long-term debt of $0.9 millionnet of the current part of $0.8 millionrelated to the debt financed by the seller, as indicated above.

On September 24, 2021, we filed an automatic shelf registration statement with
the SEC to provide us with capacity to publicly offer up to $500.0 million of
common stock, preferred stock, warrants, debt, convertible or exchangeable
securities, depositary shares, units, or any combination thereof. We may from
time to time raise capital under our shelf registration statement in amounts, at
prices, and on terms to be announced when and if any securities are offered. The
shelf
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registration statement expires on September 24, 2024. As of December 31, 2021,
we have not utilized the shelf registration statement for any equity or debt
financings.

Outlook

We expect our current cash balances to fund our planned cash expenditures in
2022 primarily related to: (i) working capital requirements, (ii) certain
ongoing costs associated with our Carolina Lithium Project including, but not
limited to, continued exploration, testing, engineering, and permitting
activities, (iii) mining interests acquisitions, and (iv) certain funding
obligations for the Quebec and Ghana projects.

Our planned cash expenditures in 2022 do not include: (i) acquisition costs of
mining interests not under contract as of December 31, 2021 for our Carolina
Lithium Project (ii) construction costs for a mine, concentrator plant or
chemical plant for our Carolina Lithium Project, Quebec Project or Ghana
Project, or (iii) equity investments in any new strategic ventures.

Our 2022 plan does not include additional cash from equity or debt financing,
cash from generating revenue, or cash distributions from our lithium projects in
Quebec and Ghana.

As of December 31, 2021, we had entered into land acquisition contracts in North
Carolina, as discussed above, totaling $46.5 million, of which we expect to
close and fund $16.2 million, $16.8 million and $13.4 million in the years ended
December 31, 2022, 2023 and 2024, respectively. These amounts do not include
closing costs such as attorney's fees, taxes and commissions. We are not
obligated to exercise our land option agreements, and we are able to cancel our
land acquisition contracts, at our option and with de minimis cancellation
costs, during the contract due diligence period. Certain land option agreements
and land acquisition contracts become binding upon commencement of construction
for the Carolina Lithium Project.

We believe our current cash balances are sufficient to fund our cash
requirements for at least the next 12 months. In the event costs were to exceed
our 2022 plan, we will reduce or eliminate current and/or planned discretionary
spending. If further reductions are required, we will reduce certain
non-discretionary expenditures.

As reflected in our BFS, we expect estimated capital costs for the Carolina
Lithium Project to be approximately $988 million. Additionally, we expect to
fund significant cash expenditures for construction costs associated with our
lithium projects in Quebec and Ghana. We will require equity or debt financing
in order to fund planned construction costs for these projects. As we approach
construction decisions for our lithium projects, we will evaluate various
project financing options, including possible strategic partnering
opportunities.

In December 2021, we submitted a loan application to the Loan Programs Office of
the U.S. Department of Energy for potential funding of program eligible capital
costs, including but not limited to, a spodumene concentrator plant and lithium
hydroxide conversion facilities associated with the Carolina Lithium Project. We
cannot be certain that our loan application will be approved or will have terms
acceptable to us.

Historically, we have been successful in raising cash through equity financing
and obtaining mining interests through seller financed debt; however, no
assurances can be given that additional financing will be available in amounts
sufficient to meet our needs or on terms that are acceptable to us. If we issue
additional shares of our common stock, it would result in dilution to our
existing shareholders. There are many factors that could significantly impact
our ability to raise funds through equity and debt financing as well as
influence the timing of future cash flows. These factors include, but are not
limited to, permitting and approvals for our projects, our ability to access
capital markets, stock price volatility, commodity price volatility, uncertain
economic conditions, and access to labor. See Part I, Item 1A "Risk Factors." in
our Transition Report.
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Cash flow

The following table is a condensed cash flow table provided as part of the Liquidity and Capital Resources discussion:

                                                         Six months Ended                            Years Ended June 30,
                                 Six months Ended        December 31, 2020
                                December 31, 2021           (unaudited)                2021                  2020                  2019

Net cash used in operating
activities                      $   (17,674,173)         $   (3,533,809)    

($16,257,254) $(6,332,301) ($9,195,612)
Net cash used in investing activities

                          (60,413,380)             (5,090,556)           (34,565,793)           (3,452,254)           (1,554,129)
Net cash (used in) provided by
financing activities                   (319,112)             60,704,271            174,617,607            24,718,553             8,321,894
Net (decrease) increase in cash
and cash equivalents            $   (78,406,665)         $   52,079,906     

$123,794,560 $14,933,998 $(2,427,847)

Cash flow from operating activities

Operating activities used $17.7 million and $3.5 million during the six months
ended December 31, 2021 and 2020, respectively, resulting in an increase in cash
used in operating activities of $14.1 million. The increase in cash used in
operating activities was primarily due to an increase in net loss of $13.2
million, adjusted for noncash items, as well as an increase from changes in
operating assets and liabilities in the six months ended December 31, 2021
compared to the six months ended December 31, 2020.

Operating activities used $16.3 million and $6.3 million in the years ended June
30, 2021 and 2020, respectively, resulting in an increase in cash used in
operating activities of $10.0 million. The increase in cash used in operating
activities was primarily due to an increase in net loss of $13.2 million,
adjusted for noncash items, partially offset by an increase from changes in
operating assets and liabilities in the year ended June 30, 2021 compared to the
year ended June 30, 2020.

Operating activities used $6.3 million and $9.2 million in the years ended June
30, 2020 and 2019, respectively, resulting in a decrease in cash used in
operating activities of $2.9 million. The decrease in cash used in operating
activities was primarily due to a decrease in net loss of $4.0 million, adjusted
for noncash items, partially offset by an increase from changes in operating
assets and liabilities in the year ended June 30, 2020 compared to the year
ended June 30, 2019.

Cash flow from investing activities

Investing activities used $60.4 million and $5.1 million during the six months
ended December 31, 2021 and 2020, respectively, resulting in an increase in cash
used in investing activities of $55.3 million. The increase in cash used in
investing activities was mainly due to funding of our equity investments in
Sayona, Sayona Quebec and Atlantic Lithium totaling $43.6 million, including
transaction costs, cash advances to the Ewoyaa Project for exploration and
evaluation activities of $4.3 million, and an increase in cash purchases of
mining interests for our Carolina Lithium Project of $7.4 million in the six
months ended December 31, 2021 compared to the six months ended December 31,
2020.

Investing activities used $34.6 million and $3.5 million in the years ended June
30, 2021 and 2020, respectively, resulting in an increase in cash used in
investing activities of $31.1 million. The increase in cash used in investing
activities was mainly due to cash payments toward equity investments in Sayona
and Sayona Quebec totaling $16.4 million, including transaction costs, and an
increase in cash purchases of mining interests for our Carolina Lithium Project
of $15.4 million in the year ended June 30, 2021 compared to the year ended June
30, 2020.

Investing activities used $3.5 million and $1.6 million in the years ended June
30, 2020 and 2019, respectively, resulting in an increase in cash used in
investing activities of $1.9 million. The increase in cash used in investing
activities was mainly due to cash purchases of mining interests for our Carolina
Lithium Project of $1.2 million in the year ended June 30, 2020 compared to the
year ended June 30, 2019. We also had an increase in capital expenditures of
$0.7 million in the year ended June 30, 2020 compared to the year ended June 30,
2019.
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Cash flow from financing activities

Financing activities used $0.3 million and provided $60.7 million during the six
months ended December 31, 2021 and 2020, respectively, resulting in a decrease
in cash from financing activities of $61.0 million. The decrease in cash from
financing activities was mainly due to $0.6 million in equity financing from
exercises of stock options in the six months ended December 31, 2021 compared to
$61.0 million from cash exercises of stock option and issuances of our common
stock in the six months ended December 31, 2020. In addition, there were $0.3
million in debt payments in the six months ended December 31, 2020, compared to
$0.9 million in debt payments in the six months ended December 31, 2021.

Financing activities provided $174.6 million and $24.7 million in the years
ended June 30, 2021 and 2020, respectively, resulting in an increase in cash
provided by financing activities of $149.9 million. The increase in cash
provided by financing activities was due to an increase in net issuances of our
common stock of $149.9 million in the year ended June 30, 2021 compared to the
year ended June 30, 2020. In the year ended June 30, 2021, we raised $175.0
million in cash through issuances of our common stock, net of issuance costs.

Financing activities provided $24.7 million and $8.3 million in the years ended
June 30, 2020 and 2019, respectively, resulting in an increase in cash provided
by financing activities of $16.4 million. The increase in cash provided by
financing activities was primarily due to an increase in equity financing as we
received cash of $25.1 million through issuance of our common stock, net of
issuance costs, in the year ended June 30, 2020 compared to $8.3 million in the
year ended June 30, 2019. We made principal debt payments totaling $0.4 million
in the year ended June 30, 2020 compared to no principal debt payments in the
year ended June 30, 2019.

Contractual obligations and other commitments

The following table summarizes our contractual obligations as of December 31,
2021, that we believe will affect cash over the next five years and thereafter:
                                               Less than
                                 Total          1 year        1-3 years      3-5 years      Thereafter
Contractual obligations
Long-term debt obligations   $ 1,676,336      $ 762,189      $ 899,631      $  14,516      $         -
Lease liabilities                 59,430         59,430              -              -                -
                             $ 1,735,766      $ 821,619      $ 899,631      $  14,516      $         -


Although we have entered into certain supply agreements, purchase obligations
from our customers are defined as purchase agreements that are enforceable and
legally binding and that specify all significant terms, including quantity,
price, and the approximate timing of the transaction. Our obligations to fulfill
supply agreements do not meet these criteria and are therefore not reflected in
the table above.

Off-balance sheet arrangements

We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to investors.

Critical accounting policies and estimates

Our management's discussion and analysis of our financial condition and results
of operations is based on our consolidated financial statements, which have been
prepared in accordance with GAAP. The preparation of these consolidated
financial statements requires us to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities as of the date of the consolidated financial statements,
as well as the reported expenses incurred during the reporting periods. Our
estimates are based on our historical experience and on various other factors
that we believe are reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying value of assets and
liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates under different assumptions or conditions.
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While our significant accounting policies are described in the notes to our
consolidated financial statements included elsewhere in our Transition Report,
we believe that the following critical accounting policy is the most important
to understanding and evaluating our reported financial results.

Stock-based compensation

The Compensation Committee generally grants stock-based awards in the first
quarter of each year. The Compensation Committee does not have any programs,
plans, or practices of timing these awards in coordination with the release of
material non-public information. We have never backdated, re-priced, or
spring-loaded any of our stock-based awards.

Equity-settled, share-based payments are provided to officers, employees,
consultants and other advisors. These share-based payments are measured at the
fair value of the equity instrument at the grant date. Fair value of share
options is determined using the Black-Scholes option pricing model, taking into
account the terms and conditions upon which the instruments were granted, and
are disclosed in Note 10 - Stock Based Compensation, to the audited consolidated
financial statements appearing elsewhere in our Transition Report. We record
stock-based compensation expense within both exploration and mine development
costs, and general and administrative expenses in the Statements of Operations.
Costs are allocated among those receiving the benefit based upon job function.
There are certain employees who serve both functions, and therefore, their
stock-based compensation expense is split between both financial statement lines
in the consolidated statements of operations.

Estimating fair value for share-based payment transactions requires
determination of the most appropriate valuation model, which depends on the
terms and conditions of the grant. This estimate also requires determination of
the most appropriate inputs to the valuation model including the expected life
of the share option, volatility, dividend yield and risk-free interest rate and
making assumptions about them.

Changes to this data would affect the valuation of each equity instrument valued in this way and therefore the value of each award would vary differently depending on the change in the respective data.

The fair value determined at the grant date is expensed on a straight-line basis
over the vesting period, based on our estimate of equity instruments that will
eventually vest. At each reporting date, we revise our estimate of the number of
equity instruments expected to vest. The impact of the revision of the original
estimates, if any, is recognized in profit or loss over the remaining vesting
period, with a corresponding adjustment to the share-based payments reserve.

Investments in non-consolidated entities

We strategically invest in unconsolidated entities that we believe will provide
us access to hard rock lithium assets as well as projects with the potential for
scale, low-cost, sustainable production practices and that are strategically
located to our proposed lithium hydroxide manufacturing sites.

Our unconsolidated entities are accounted for by the equity method of accounting
because we have a significant influence, but not control, in the investee. We
record our investments in these entities in our consolidated balance sheets as
"Equity investments in unconsolidated affiliates" and our pro-rata share of the
entities' earnings or losses in our consolidated statements of operations as
"Loss from equity investments in unconsolidated affiliates."

We look at specific criteria and use our judgment when determining if we have a
controlling interest in an unconsolidated entity. Factors considered in
determining whether we have significant influence, or we have control, include,
but are not limited to, ownership percentage, the ability to appoint individuals
to the investee's board of directors, operational decision-making authority, and
participation in policy-making decisions. The accounting policy relating to the
use of the equity method of accounting is a critical accounting policy due to
the judgment required in determining whether we have significant influence over
the entity.
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