September 06, 2022
Class I

Piedmont Lithium to Launch $582MM Tennessee Plant

Written by Marybeth Luczak, Executive Editor

Conceptual design of the 30,000 metric-ton-per-year Tennessee Lithium plant, to be served by CSX. (Rendering Courtesy of Piedmont Lithium)

Belmont, N.C.-based Piedmont Lithium will build a lithium hydroxide processing, refining and manufacturing facility in Etowah, Tenn. To be served by CSX, the facility is to slated to produce 30,000 metric tons of battery-grade lithium per year, with production beginning in 2025.

Piedmont on Sept. 1 announced the site for the $582 million plant, which is slated to convert spodumene concentrate—sourced principally from its international project investments—to “significantly expand the U.S. supply of lithium hydroxide, a key component in the manufacturing of EV [electric vehicle] batteries.” The company said Tennessee Lithium is expected to be the largest lithium hydroxide processing facility constructed in the United States and among the first to be built with the Metso:Outotec process, eliminating “the acid-leaching of spodumene and the production of sodium sulfate waste.”

Tennessee Lithium’s production target of 30,000 metric tons per year (TPY) of LHP-2 lithium hydroxide is said to complement Piedmont’s planned Carolina Lithium operation, bringing its estimated total U.S.-based production capacity to 60,000 TPY by 2026. “Current total U.S. production of lithium hydroxide is just 15,000 TPY,” Piedmont reported.

***Piedmont Lithium said the location of its Tennessee plant “offers strategic access to transportation networks and customers.” (Map Courtesy of Piedmont Lithium)***

“The rapid electrification of the automotive market has led to massive investments in EV and lithium-ion battery production in the United States, creating a critical need for lithium hydroxide produced in the U.S.,” Piedmont Lithium President and CEO Keith Phillips said. “Our Tennessee Lithium operation should play an important role in helping to mitigate supply shortages in the American EV industry and battery supply chain, particularly in the wake of recent legislation incentivizing the use of domestically sourced critical materials and providing tax credits for U.S. producers.”

The plant will be located in McMinn County at the North Etowah Industrial Park, a CSX and Select Tennessee Certified Site. Piedmont said it was selected for its access to rail, road and river transportation, as well as its proximity to battery and automotive plants being constructed by prospective customers, and the company’s headquarters and Carolina Lithium project, both in Gaston County, N.C.

Kiewit Corp. and Primero Group will perform Front-End Engineering Design (FEED) for Tennessee Lithium. FEED is expected to wrap up in first-half 2023, positioning Piedmont to sign an Engineer, Procure and Construct (EPC) contract upon completion of permitting and project financing activities, Piedmont reported.

“Site selection and [the] FEED award are important 2022 milestones toward potential first production from Tennessee Lithium in 2025,” Piedmont Lithium EVP and Chief Operating Officer Patrick Brindle said. “We’re pleased to align ourselves with top-tier contractors Kiewit and Primero and, having announced our site selection, we will proceed to develop the relevant permit applications for the project. … In conjunction with FEED, the Kiewit and Primero teams should leverage the work we’ve accomplished over the past several years to deliver a definitive feasibility study of Tennessee Lithium by the end of this year. We hope to break ground … in Etowah on the earliest practically achievable timeline.”

“Companies like Piedmont Lithium choose to call Tennessee home because of our unmatched workforce and strong business climate,” Tennessee Governor Bill Lee said during the announcement. “I thank this company for its investment in McMinn County and commitment to create nearly 120 manufacturing jobs for Tennesseans.”

“Thank you to the local community and our partners at CSX for their support in making this win a reality,” said Stuart McWhorter, Commissioner of the Tennessee Department of Economic and Community Development. “Tennessee continues to attract companies in the EV industry [and] we believe McMinn County will be the ideal location to support Piedmont‘s growth and success.”