Published: April 27, 2023 |

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Piedmont Lithium has released the results of a definitive feasibility study (DFS) of the company’s proposed Tennessee Lithium project in McMinn County, Tennessee. The study of the 30,000 metric ton per year (tpy) lithium hydroxide (LiOH) plant featuring the innovative and waste-reducing Metso:Outotec conversion technology affirms the potential for Piedmont to develop an American-based lithium hydroxide business using spodumene concentrate from market sources, including via existing offtake agreements with Sayona Quebec and Atlantic Lithium.

“America’s pro-EV and battery manufacturing policies are providing an advantage to Piedmont at a time when many analysts are projecting lithium shortages to continue into the 2030s. Piedmont’s selection for a $141.7 million grant last year by the U.S. Department of Energy exemplifies America’s commitment to developing a domestic lithium supply chain. Tennessee Lithium is positioned to be a key resource for EV and battery manufacturers,” said Piedmont President and Chief Executive Officer Keith Phillips.

“Through long-term supply agreements with our partners, we can source raw material from spodumene that we own or in which we have an economic interest, providing greater control of our feedstock while capturing the economics of integrated production. We can advance development of the operation with revenues anticipated from the restart of North American Lithium and our recent offtake agreements with Tesla and LG Chem,” added Phillips.

“Further, with the Metso:Outotec flowsheet, we believe we can sustainably produce critical lithium materials on a cost-effective basis for a more responsible profile compared to producers utilizing sulfuric acid roasting,” concluded Phillips.

Study economics for Tennessee Lithium are highlighted by an estimated after-tax NPV (8 percent discount rate) of $2.5 billion and an after-tax IRR of 32 percent. The DFS assumes fixed prices of $26,000 per metric ton of lithium hydroxide and $1,600 per metric ton of spodumene concentrate over the project’s 30-year life. The model includes a section 45X production tax credit of 10 percent under the Inflation Reduction Act of 2022 and assumes a credit of $141.7 million against project capital costs based on expected receipt of a U.S. Department of Energy grant. Tennessee Lithium development remains subject to, among other things, receipt of material permits and arrangement of project financing.

Piedmont is advancing permitting and project financing activities for Tennessee Lithium with the goal of beginning construction in 2024. The company is focused on first commercial shipments in Q3 from North American Lithium with revenue generation to support activities across Piedmont’s global portfolio of projects, including Tennessee Lithium. A DFS is expected mid-2023 for the Ewoyaa Lithium Project in Ghana, which is expected to be the primary feedstock for Tennessee Lithium, while Carolina Lithium continues to advance through permitting and approvals processes.

Piedmont Lithium is developing a world-class, multi-asset, integrated lithium business focused on enabling the transition to a net zero world and the creation of a clean energy economy in North America. Its goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets where they hold an economic interest. Their projects include Its wholly-owned Carolina Lithium and Tennessee Lithium projects in the United States and partnerships in Quebec with Sayona Mining and in Ghana with Atlantic Lithium. These geographically diversified operations will enable Piedmont to play a pivotal role in supporting America’s move toward decarbonization and the electrification of transportation and energy storage.

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