RALEIGH – Two lithium battery-focused projects with strong North Carolina ties will receive nearly $300 million in federal funding as part of new Department of Energy Grants.
The North Carolina-based companies winning the grants include Piedmont Lithium and Albemarle U.S.
“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,” said Piedmont CEO Keith Phillips in a statement. “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.”
Added Albemarle CEO Kent Masters: “Receiving the DOE grant affirms Albemarle’s position as a global market leader and one of the only lithium companies currently producing battery-grade lithium from U.S. resources,” said Masters. “Expanding our U.S. footprint also increases the speed of lithium processing and reduces greenhouse gas emissions from long-distance transportation of raw minerals. We hope this project spurs additional investment by others in the domestic EV battery supply chain, such as cathode manufacturers, battery makers, and auto manufacturers.”
President Joe Biden and Energy Secretary Jennifer Granholm announced two actions Wednesday targeting domestic battery supply chains.
The Department of Energy is awarding $2.8 billion in grants from the bipartisan infrastructure law passed last year to 20 manufacturing and processing companies for projects across 12 states. The battery investments include components affecting both the electric grid and electric vehicles.
[For more details, see: https://www.whitehouse.gov/briefing-room/statements-releases/2022/10/19/fact-sheet-biden-harris-administration-driving-u-s-battery-manufacturing-and-good-paying-jobs/]
The two North Carolina-linked projects include:
PROJECT NAME: Kings Mountain Lithium Materials Processing Plant
- APPLICANT: Albemarle U.S. Inc.
- Federal Cost Share: $149,658,312
- Recipient Cost Share: $225,866,921
- Supply Chain Segment: Materials Separation & Processing (Cathode Minerals)
Project Description:
The project objective is to construct a new, commercial-scale U.S.- based lithium materials processing plant at Kings Mountain, NorthCarolina, that uses sustainably extracted spodumene minerals from the site’s lithium mine. This investment would allow Albemarle to process 8,000 tons per day (2.7 million tons per annum) of spodumene ore through a plant designed to produce 1,150-1,200 tons per day (~350,000 tons per annum) of 5.5-6.0% Li2O spodumene concentrate. Such a plant would feed a 50,000 metric ton per year conversion plant to produce battery grade lithium hydroxide to support domestic manufacturing of the lithium-ion battery cells to power 750,000 electric vehicles per year. Albemarle is finalizing the site selection for the lithium hydroxide conversion plant in the southeastern United States.
Community Benefits:
The project’s infrastructure and associated jobs will help create a cornerstone of the U.S.-based lithium battery supply chain and provide critical support for the electric vehicle market. The 200+ full-time highly skilled jobs in mineral processing will be located in Kings Mountain, supported by a dedicated mineral processing operator training program at Cleveland Community College through a $5M grant, a minerals lab research program at Virginia Tech through a $1.5M grant, and a minerals pilot plant and engineering training program at North Carolina State University’s Asheville Minerals Research Lab through a $1.5M grant.
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PROJECT NAME: Tennessee Lithium
- APPLICANT: Piedmont Lithium Inc.
- Federal Cost Share: $141,680,442
- Recipient Cost Share: $430,356,259
- Supply Chain Segment: Materials Separation & Processing (Cathode Minerals)
Project Description:
Piedmont Lithium (Piedmont) is a leading global developer of lithium resources for the U.S. electric vehicle industry. Piedmont is designing Tennessee Lithium to be a world-class lithium hydroxide facility and a large, low-cost contributor to the battery manufacturing supply chain
with a sustainability footprint that is superior to incumbent producers.
Located in McMinn County, Tennessee, the project will be sited in an ideal location and uniquely positioned to supply America’s rapidly growing electric vehicle market. At full production, the Tennessee Lithium is expected to produce 30,000 metric tons per year of lithium hydroxide for the domestic battery and EV market, doubling the lithium hydroxide production capacity currently available in the United States. Construction is expected to begin in 2023, subject to permitting and project financing, with first production targeted for 2025.Using modern technology and processes, Piedmont expects Tennessee Lithium to be one of the most sustainable operations in the world.
Community Benefits:
Piedmont Lithium plans to invest approximately $600 million in the development of Tennessee Lithium, drive significant economic activity, and create approximately 120 new, direct jobs. Further, Piedmont plans to partner with local organizations and community stakeholders to support necessary training programs for local employees and contribute to philanthropic and civic efforts in the region.
The location of Tennessee Lithium in McMinn County, Tennessee is Tennessee Certified and within an Opportunity Zone. The site has direct access to high voltage power, natural gas, and water and wastewater services, and is logistically advantageous with adjacent rail service by CSX and proximity to U.S. Routes 11 and 411 as well as Interstate I-75. The site is approximately 12 miles from the Hiawasee River, allowing for barge transport of spodumene concentrate (SC6) as well as the potential for modular construction. In addition to excellent infrastructure, Tennessee is home to a hardworking, talented workforce and a welcoming business climate. The location also features proximity to battery and automotive plants being constructed by prospective customers as well as Piedmont’s corporate headquarters and planned Carolina Lithium project in North Carolina
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Biden also announced the formation of the American Battery Materials Initiative, which the White House has called “a new effort to mobilize the entire government and securing a reliable and sustainable supply of critical minerals used for power, electricity and electric vehicles.”
In addition to North Carolina, the funding will be spent in Alabama, Georgia, Kentucky, Louisiana, Missouri, Nevada, New York, North Dakota, Ohio, Tennessee and Washington. It is expected to create 8,000 jobs, officials on a call with reporters ahead of the announcement said. The projects are expected to “develop enough lithium to supply over 2 million electric vehicles annually and establish significant domestic production of graphite and nickel,” according to the fact sheet.
Wednesday’s investment marks “the first of several rounds of investment in the battery supply chain,” a senior administration official on the call said.
The private sector, which was represented at Wednesday afternoon’s event, is expected to match the federal government’s investment.
“The recipients of federal grants to invest and build out the domestic supply chain are required to at least match the federal funding with private sector capital. They’ve more than done that in this case. So the $2.8 billion is being leveraged for a total of a $9 billion investment today,” the official said.
Another senior administration official pressed that the funding will move US away from dependence China for these minerals, suggesting the effort builds more broadly on building supply chains resilient from autocracies.
“Over the last decades, China has cornered the supply chain for batteries from critical mineral mining and processing to cathode anode belt manufacturing for critical minerals. For the critical minerals lithium, cobalt, graphite, nickel and manganese that are crucial to advanced batteries, China controls nearly all global processing capacity,” the official said.
The official continued, “As the world transitions from a fossil fuel to a clean energy-powered economy, we cannot trade dependence on oil from autocrats like (Russian President Vladimir) Putin to dependence on critical minerals from China.”
