Piedmont Lithium (NASDAQ:PLL) Inc (ASX:PLL, NASDAQ:PLL, XETRA:) has selected Etowah, Tennessee in McMinn county as the location to build a 30,000 tonne per annum LHP-2 lithium hydroxide operation, complementing the company’s lithium assets and supporting the development of a fully integrated lithium business in North America.
The project is designed to convert spodumene concentrate sourced principally from Piedmont’s international project investments, intended to be operational and producing by 2025 as potentially the largest lithium hydroxide processing facility in the United States.
“Companies like Piedmont Lithium choose to call Tennessee home because of our unmatched workforce and strong business climate,” Tennessee governor Bill Lee said.
“I thank this company for its investment in McMinn county and commitment to create nearly 120 manufacturing jobs for Tennesseans.”
Becoming a lead lithium supplier
“We are excited to announce the site of our newest project and partnership with the City of Etowah in McMinn County, and the State of Tennessee, as we advance our strategic goal of becoming a leading lithium supplier in the United States,” Piedmont Lithium president and CEO Keith Phillips said.
“We are humbled by the warm welcome we have received from our new partners, and we look forward to making Piedmont an integral part of the Etowah and McMinn county communities as we develop Tennessee Lithium together for our mutual success.”
PLL is also targeting sustainability as a cornerstone of its lithium hydroxide operation, leveraging the Metso:Outotec process to remove the need for acid-leach processing and the production of sodium sulphate waste.
This Tennessee plant is the second Piedmont intends to build in the US, complementing the planned 30,000-tonne-per-annum Carolina Lithium operation to bring the company’s potential production capacity to 60,000 tonnes per annum of lithium hydroxide.
Total US production of lithium hydroxide currently sits at about 15,000 tonnes per annum.
Meeting growing demand
“The rapid electrification of the automotive market has led to massive investments in electric vehicle and lithium-ion battery production in the United States, creating a critical need for lithium hydroxide produced in the U.S.,” Phillips continued.
“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 incentivising the use of domestically sourced critical materials and providing tax credits for U.S. producers.”
Piedmont selected Tennessee for its lithium operation due to cooperative government relations, access to solid infrastructure including rail, road and river transportation, a talented workforce, and a constructive business climate.
The location also offers proximity to battery and automotive plants being constructed by prospective customers, and the company’s headquarters and Carolina Lithium project, both in Gaston County, North Carolina.
PLL taps FEED contractors and begins permitting
Piedmont Lithium has selected Kiewit-Primero to spearhead its front-end engineering design (FEED) contract for the Tennessee operation, a specialised design-build firm with strong lithium industry know-how that has supported Piedmont’s development since early 2018.
The company expects the FEED to be completed by the first half of next year, after which engineering, procurement and construction (EPC) contracts will be awarded for the construction of the project.
As part of FEED, Kiewit-Primero is expected to complete a definitive feasibility study (DFS) for Tennessee Lithium by the end of 2022.
“Site selection and FEED award are important 2022 milestones toward potential first production from Tennessee Lithium in 2025,” Piedmont Lithium executive vice president and chief operation 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.
“Tennessee Lithium is expected to share many attributes with our planned Carolina Lithium operations, including the use of the core Metso:Outotec technology package.
“In conjunction with FEED, the Kiewit-Primero team 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 here in Etowah on the earliest practically achievable timeline.”
Based on prior studies, PLL expects to invest $600 million in the development of the project.
The company’s timeline for progression across its portfolio is as follows:
- 2023: Quebec Project / North American Lithium restart – SC6 production planned for first half 2023
- 2024: Ghana Project – spodumene concentrate; preliminary feasibility study (PFS) third quarter 2022
- 2025: Tennessee Lithium – lithium hydroxide production from Ghana and/or NAL concentrate
- 2026: Carolina Lithium – integrated spodumene concentrate and lithium hydroxide production.