Piedmont Lithium has (earlier post) selected Etowah, Tennessee as the location of the company’s planned 30,000 metric ton per year (tpy) LHP­2 lithium hydroxide operation (“Tennessee Lithium”). Planned completion and start of production is in 2025.

The project will convert spodumene concentrate sourced principally from Piedmont’s international project investments to expand significantly the US supply of lithium hydroxide, a key component in the manufacturing of EV batteries.

Conceptual design of the 30,000 TPY Tennessee Lithium plant

Piedmont’s Tennessee Lithium facility should be among the first lithium hydroxide plants built with the Metso:Outotec process. This process eliminates the acid-leaching of spodumene and the production sodium sulfate waste, which will make Tennessee Lithium one of the world’s most sustainable lithium hydroxide operations, according to the company.

Tennessee Lithium’s production target of 30,000 tpy of lithium hydroxide will complement the company’s planned Carolina Lithium operation to bring Piedmont’s estimated total US-based production capacity to 60,000 tpy by 2026. Current total US production of lithium hydroxide is just 15,000 tpy.

The project’s location in Tennessee was selected for its cooperative government relations, access to excellent infrastructure including rail, road and river transportation, a talented workforce, a constructive business climate, as well as its proximity to the battery and automotive plants being constructed by prospective customers, and the Company’s headquarters and Carolina Lithium project, both in Gaston County, North Carolina.

Front-End Engineering Design (FEED) for Tennessee Lithium will be performed by Kiewit and Primero. FEED will conclude in H1 2023 and position Piedmont to sign an EPC contract for the construction of Tennessee Lithium upon completion of permitting and project financing activities. As part of FEED, Kiewit and Primero are expected to complete a Definitive Feasibility Study (DFS) for Tennessee Lithium by the end of 2022.

Based on prior studies, Piedmont plans to invest approximately $600 million in the development of the operation. The Tennessee Lithium Project is expected to drive significant economic activity and create approximately 120 new, direct jobs.

The timeline for the progression of the Company’s global portfolio of four projects and estimated start of production date for each facility is as follows:

• 2023: Québec Project / North American Lithium restart—SC6 production planned for H1 2023

• 2024: Ghana Project—spodumene concentrate; preliminary feasibility study (PFS) Q3 2022

• 2025: Tennessee Lithium—lithium hydroxide production from Ghana and/or NAL concentrate

• 2026: Carolina Lithium—integrated spodumene concentrate and lithium hydroxide production

Development of each of the planned projects is dependent upon receipt of permits necessary for construction and operations as well as project financing.