Piedmont Lithium announced it had received a US$141.7 million grant from the US Department of Energy (DOE).
In a statement, Piedmont Lithium said the grant was one of the first initiatives supported by the President’s Bipartisan Infrastructure Act which aims to increase domestic production of batteries for EVs and the electrical grid as well as materials and components sources from other countries.
The funding will help develop the company’s around US$600 million Tennessee Lithium project, which intends to increase the amount of lithium hydroxide available in the US by 30,000 metric tonnes annually. Lithium hydroxide is a crucial component of high-energy density, long-range electric vehicle batteries.
“The U.S 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. Over 80% of lithium hydroxide production today occurs 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 United States,” Piedmont President and CEO Keith Phillips said.
Piedmont’s Tennessee Lithium project, located in McMinn County, Tennessee, is being designed to generate lithium hydroxide from spodumene concentrate using the Metso:Outotec process flow sheet, resulting in lower emissions and carbon intensity, and improved capital and operating costs compared to incumbent operations. The Tennessee Lithium project is anticipated to boost economic activity in McMinn County and produce around 120 new direct employment.
“We are pleased that the DOE has chosen to support our Tennessee Lithium project, and we are committed to being responsible stewards of these grant funds. This funding will enable us to accelerate detailed engineering and place orders for long-lead items.,” said Piedmont Chief Operating Officer Patrick Brindle.
The Tennessee Lithium project is scheduled to begin construction in 2023, subject to permits and project funding timelines, with production beginning in 2025.
According to Piedmont, it has been invited to negotiate the terms of the grant, timing, and co-financing as part of the Company’s selection for the DOE funding. The agreement will determine the final details of the project grant. The award will not be finalised until Piedmont, and the DOE agrees on the grant’s provisions. Once the terms are approved, grant financing will be contingent upon fulfilling those conditions.
Piedmont intends to generate 60,000 tpy of lithium hydroxide in the United States when its present portfolio of lithium assets is fully operational, compared to the current domestic output of around 15,000 tpy. Piedmont’s projected output should position the company to serve the rising US battery manufacturing industry, which has announced capital investments totalling more than $50 billion for new US battery factories. More than 600,000 tpy of lithium hydroxide is projected to be required by these battery factories.
The Tennessee Lithium project is a key component of Piedmont’s development strategy, with production expected to begin in the following year:
- 2023: Quebec – production of spodumene concentrate at North American Lithium.
- 2024: Ghana – production of spodumene concentrate at Ewoyaa.
- 2025: Tennessee Lithium – production of lithium hydroxide from spodumene concentrate obtained from our worldwide ventures.
- 2026: Carolina Lithium – combined manufacturing of spodumene concentrate and lithium hydroxide.
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