Piedmont’s Tennessee lithium hydroxide project collars US Government backing with $224m grant
Piedmont Lithium’s (ASX: PLL) Tennessee lithium hydroxide project is among the first be selected for a US Government Department of Energy (DOE) grant, which aims to boost domestic electric vehicle battery manufacturing.
Under US President Joe Biden, the DOE has awarded US$2.8 billion in grants to support the initiative, with Piedmont’s Tennessee project locking-in US$141.7 million (A$224 million).
The US$141.7 million will support construction and development of the project, which has a total capital expenditure requirement of US$600 million.
Construction of Tennessee is scheduled to begin in 2023, and when completed, it will be producing around 30,000 tonnes per annum of lithium hydroxide for the US electric vehicle battery market.
Piedmont president and chief executive officer Keith Phillips said the company was “honoured” to be selected for the US Government funding.
“The US Government is putting investment dollars behind its policies to support energy independence and national security, and we are grateful to be selected to help spur critical domestic development of the EV battery supply chain.”
Mr Phillips noted that more than 80% of the world’s current lithium hydroxide production occurred in China.
“This grant will accelerate the development of the Tennessee lithium project as a world-class lithium hydroxide operation, which is expected to more than double the domestic production of battery grade lithium hydroxide in the US.”
As part of the DOE funding, Piedmont will negotiate with the government the grant’s specific terms, including timing and any co-funding.
Once secured, the government funding will enable Piedmont to accelerate detailed engineering for the project and place orders for long lead items.
Tennessee lithium project
Piedmont’s Tennessee project in located in Etowah in McMinn County.
The project will involve constructing the largest lithium hydroxide processing facility in the US – producing 30,000tpa from 2025.
Once operational, the plant will treat spodumene concentrate from Piedmont’s project investments, using the Metso:Outotec process, which eliminates the need for acid-leaching of spodumene. It also avoids producing sodium sulphate waste.
As such, Piedmont expects Tennessee to become one of the world’s most sustainable lithium hydroxide operations.
The project’s Tennessee location was selected for its cooperative government relations, infrastructure access, talented workforce and supportive business climate.
It is also close to battery and automotive plants under construction along with Piedmont’s headquarters and its integrated Carolina spodumene and lithium hydroxide project.
All-up from its US-based operations, Piedmont plans to produce 60,000tpa of lithium hydroxide for the US battery market.
Current US lithium hydroxide production totals 15,000tpa.