The Piedmont Lithium Inc (ASX: PLL) share price is set to end the week on a whimper even after it announced it will build the largest lithium hydroxide processing plant in the United States.
The miner said the new facility will be in Etowah, McMinn County, Tennessee. It will have a nameplate production capacity of 30,000 tonnes a year.
Piedmont Lithium is looking to capitalise on the expected 12-times demand growth for electric vehicles (EVs) by 2030 in the US and the trend toward more locally-sourced content in the value chain.
The Piedmont Lithium share price is falling 5.1% to 84 cents in early trading on Friday. The S&P/ASX All Ordinaries Index (ASX: XAO) is falling by 0.2%.
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Piedmont Lithium share price plugged into the US
The Tennessee plant is located near prospective customers, which include battery and automotive manufacturers. It is also close to Piedmont's proposed North Carolina project in Gaston County.
Piedmont Lithium said it chose Etowah for its talented workforce and good infrastructure, including rail, road, and river transportation.
No doubt tax and other incentives offered by the state also influenced the ASX lithium miner's decision, although the news isn't helping the Piedmont Lithium share price today.
Details on the new lithium plant
The miner believes the Tennessee project will be the largest lithium hydroxide processing facility constructed in the US.
It will also be among the first in the world to use the Metso:Outotec process. This process does not require acid-leaching of spodumene. This eliminates the production of sodium sulphate waste.
Piedmont Lithium claims this will make its Tennessee plant "one of the world's more sustainable" operations of its kind.
Management is aiming for first production by 2025. It expects the definitive feasibility study (DFS) by the end of this calendar year.
Demand for lithium hydroxide
Lithium hydroxide is required in high-nickel batteries used in longer-range EVs. The miner pointed out that this commodity will dramatically reduce carbon and other emissions.
There is a big push in the US to process key minerals onshore due to rising geopolitical tensions that are threatening global supply chains.
Piedmont Lithium believes it can be a major producer of lithium hydroxide in the US. Its Tennessee and North Carolina plants should be producing around 60,000 tonnes of the commodity by 2026.
To put that in perspective, the total US production of lithium hydroxide currently stands at just 15,000 tonnes a year.
Piedmont Lithium share price snapshot
The Piedmont Lithium share price is lagging other ASX lithium shares over the past year. It has gained a modest 5%.
More established producers that are better able to capitalise on strong lithium spot prices are doing better.
For instance, the Pilbara Minerals Ltd (ASX: PLS) share price has gained 62%. The Allkem Ltd (ASX: AKE) share price is up 46% over the period.
