Piedmont Lithium has received a Conditional Major Non-Title V Construction and Air Permit from the Tennessee Department of Environment and Conservation for the proposed Tennessee Lithium project.
Piedmont now has all the material permits needed to commence construction at the Tennessee Lithium project, having received the Air Permit for the proposed 30,000 metric tonne per year (tpy) lithium hydroxide manufacturing plant. Approval of the Air Permit is a crucial milestone in developing the roughly $800 million project, which will significantly increase the US lithium hydroxide production capacity of around 17,000 tpy.
Piedmont President and CEO Keith Phillips commended the project team’s accomplishment in advancing the project towards being a world-class lithium manufacturer and an essential contributor to US energy security.
“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 U.S., this conversion facility will be key in the domestic effort to reduce reliance on foreign nations for lithium processing,” Phillips said.
Piedmont previously announced strong project economics for Tennessee Lithium in an April definitive feasibility study (DFS). The DFS highlighted the favourable impact of America’s clean energy legislation and the value of the Company’s hard-rock production approach, with a project net present value of $2.5 billion and an internal rate of return of 32%.
The US Department of Energy chose Tennessee Lithium to receive a $141.7 million grant to support the project’s construction in October 2022. As Piedmont and its advisers begin discussions with possible strategic partners for the remaining funds needed for the project, the funding process for the grant continues to move forward. The company intends to secure the necessary funding from partners or lenders.
Plans are being developed to lease and renovate local office space to revitalise downtown Etowah, Tennessee. Workforce development operations have begun collaborating with local technical institutions to provide crucial training programs and curriculum for certain positions. Piedmont Lithium intends to recruit 120 people once the Tennessee Lithium project is up and running. Hiring will commence in H2 2023 and continue through 2026 to support construction and prepare for commercial production.
