Piedmont Lithium (NASDAQ:PLL) Inc (ASX:PLL, NASDAQ:PLL, XETRA:) is a step closer to being a player to be reckoned with in the growing US lithium market.
Permit issued
The Tennessee Department of Environment and Conservation has issued a Conditional Major Non-Title V Construction and Air Permit (air permit) for Piedmont's proposed Tennessee Lithium project in McMinn County, Tennessee.
The permit allows the company to proceed with its planned 30,000 metric ton per year (tpy) lithium hydroxide manufacturing plant, positioning it to nearly triple the current domestic production capacity.
With all necessary material permits now in hand, Piedmont Lithium is ready to kickstart construction at Tennessee Lithium, which represents an investment of around $800 million. The project's aim is to bolster current US lithium hydroxide production capacity, which currently stands at around 17,000 tpy.
Made in America
Piedmont Lithium president and CEO Keith Phillips said: "Tennessee Lithium is uniquely positioned in America's emerging battery belt to supply the domestic market with crucial, made-in-America lithium resources.
“Since announcing the selection of the site in McMinn County, Tennessee, nearly one year ago, our team has been focused on permitting, engineering, and working with local officials to prepare this project to support the electric vehicle and battery manufacturing supply chain.
“As demand for lithium hydroxide continues to soar in the US, this conversion facility will be key in the domestic effort to reduce reliance on foreign nations for lithium processing.”
Robust economics in DFS
The company has released a definitive feasibility study (DFS) for the Tennessee Lithium project, which showcased robust project economics.
The DFS revealed a project net present value of $2.5 billion and an internal rate of return of 32%, highlighting the positive impact of America's clean energy policies and the value of Piedmont Lithium's hard-rock production strategy.
To further support the project, Piedmont Lithium secured a $141.7 million grant from the US Department of Energy in October 2022. The grant's funding process is underway, and the company is in discussions with potential strategic partners to secure the remaining funding required for the project.
Additionally, Piedmont Lithium is making strides in local engagement and community development efforts. Plans to lease and renovate office space in downtown Etowah, Tennessee, aim to contribute to the area's revitalisation.
The company has also initiated workforce development activities in collaboration with local technical schools, creating training programs and curricula for specific positions.
Once operational, Tennessee Lithium is expected to employ 120 workers, with hiring set to begin in the second half of 2023 and continue through 2026 to support the construction and prepare for commercial production.
Piedmont Lithium's dedication to expanding lithium hydroxide production in the U.S. aligns with the country's pro-electric vehicle policies, opening new avenues for growth and energy independence. Construction at the Tennessee Lithium site is targeted to commence in 2024, with first production anticipated in 2026. As the project advances, the nation's lithium sector looks poised for significant progress and development.