The DFS estimates a post-tax NPV of $2.49bn and an after-tax internal rate of return of 32% with a payback period of 2.8 years
Tennessee lithium project involves an estimated capital expenditure of $809.4m. (Credit: Piedmont Lithium Inc.)
Piedmont Lithium revealed that the Tennessee lithium project in Tennessee, US will involve an overall estimated capital expenditure (capex) of $809.4m, based on the findings of a definitive feasibility study (DFS).
According to the DFS, the project is expected to produce 30,000 metric tonnes of lithium hydroxide per year.
Piedmont Lithium said that the operating life of the Tennessee lithium project is anticipated to be 30 years.
In addition, the DFS estimates a post-tax net present value (NPV) of $2.49bn and an after-tax internal rate of return of 32% with a payback period of 2.8 years.
The operations at the lithium project are expected to achieve nameplate capacity within a period of 12 months.
Piedmont Lithium said that it will focus now on detailed front-end engineering design, permitting activities associated with the project, and additional pilot testwork programmes with Metso:Outotec.
The company also expects to undertake project financing discussions and commence detailed design engineering in view of a final investment decision expected to be made in 2024.
Piedmont Lithium president and CEO Keith Phillips said: “Tennessee Lithium is positioned to be a key resource for EV and battery manufacturers.
“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.”
Construction of the Tennessee lithium project is anticipated to commence in 2024.
In February 2023, Piedmont Lithium secured an equity investment of $75m from LG Chem. LG Chem also agreed to offtake 200,000 metric tonnes of spodumene concentrate (SC6) from Piedmont Lithium’s North American lithium project in Québec, Canada, which is co-owned with Sayona Mining.