When Waupaca Foundry, a large iron works company with operations in several states, announced the closure of its plant in Etowah, Tennessee, in April 2022 and shed 86% of its workforce, Brad Moses was one of those who lost their jobs. An environmental, health and safety manager at the foundry, he had given 24 years of his life to the company, raising his family in the county. It was tough for the 52-year-old, who has a wife and seven kids. “At first, you’re concerned about the security for your family, and you know you’ll miss the relationships that you’ve built over the years.”
With more than 500 workers let go as Waupaca’s local operations ground to a halt, the closing was devastating to the community of 3,600 residents in Etowah — a historic rail town built by the Louisville & Nashville railroad in 1906 and arguably the first planned community in the country. “Five hundred isn’t a lot for major cities, but for rural America, those job losses can be devastating,” said John Squires, vice president of economic and community development at Cleveland State Community College in Cleveland, Tennessee. Etowah and McMinn County are “blue collar to the core and have a very strong manufacturing background,” with over 30% of the workforce in manufacturing, noted Lindsey Ferguson, executive director of the McMinn County Economic Development Authority.
After the announcement was made, Moses made some calls without luck. But then he says he met Monique Parker, vice president of safety, environment and health at Piedmont Lithium, a North Carolina-based mining company that recovers lithium, a metal in high demand due to its use in batteries for electric vehicles. They hit it off and stayed in touch. Soon after, the company held a meet-and-greet in Etowah to recruit workers for its local facility, Tennessee Lithium, which was chosen for funding from the U.S. Department of Energy made available through the Bipartisan Infrastructure Law. At least 35 former Waupaca workers came to the meeting, trying to find new jobs. Some of them had moved to McMinn County solely to work at the plant, had lived and worked there for decades, and many had feelings of uncertainty and fear for their futures while trying to be optimistic about their job prospects.
Moses was hired to help develop and implement the Safety, Environment and Health program for Tennessee Lithium, which has been a tremendous blessing. “It’s an honor to be a part of the team laying the foundation for this operation in Etowah,” he said.
The company, which aims to become one of the largest suppliers of lithium for electric vehicles in North America, plans to add about 120 jobs to the area, with wages starting at $50,000 to $60,000, according to a Piedmont spokesperson.
“With the Waupaca layoffs, our community pulled together to help our citizens find other jobs,” said Ferguson.
The Tennessee Lithium project, announced on September 1, 2022, will focus on converting lithium hydroxide to power the cathodes in lithium-ion vehicle batteries. Tennessee was selected for its central role in America’s “Battery Belt” and as a key contributor to the U.S. electrification economy. “It came down to multiple factors, the first being the quality of the site,” said Blair. The North Etowah Industrial Park has excellent rail access and is near other EV battery component manufacturers in the “battery belt.” Etowah City Manager Russ Blair told the local paper in September 2022 that Piedmont planned to invest nearly $600 million into the county.
Tennessee Lithium plans to use a pressure leaching process that uses steam, natural soda ash and lime, which it claims will help it achieve a more responsible and safer environmental profile compared to traditional operations. The aim is to open the facility in 2025.
Funding From the Department of Energy
“Shortly after we announced the location for Tennessee Lithium, we were honored to be selected in October 2022 for a $141.7 million U.S. Department of Energy grant to support project construction,” said Piedmont spokesperson Erin Sanders.
The DOE grant was a way to help develop the electric vehicle battery supply chain in a critical area. “China produces more than 80% of lithium hydroxide in the world. This is a matter of national energy security,” she explained. Piedmont expects Tennessee Lithium to be a key contributor to American energy security, nearly tripling domestic production capacity available to U.S. EV and battery supply chains. A preliminary feasibility study predicted $572 million in total capital costs. However, rising inflation across the capital equipment sector caused that figure to jump to $809 million, with costs continuing to rise, per Sanders.
After consulting with the Department of Energy, Piedmont Lithium switched gears to pursue a DOE loan, specifically an Advanced Technology Vehicles Manufacturing (AVTM) loan. Low-interest ATVM loans are set at the current Treasury rate, with significant interest savings compared to traditional lending sources. If awarded, the ATVM loan is expected to cover a significantly larger share of the capital required for Tennessee Lithium. The plan for Tennessee Lithium is to combine U.S. government funding with support from a strategic partner or partners.
Strong Workforce Training Programs
Etowah’s Blair said the workforce development process is underway. “Obviously, we would love to see a large portion of those workers displaced from the closure of Waupaca here in Etowah, have opportunities to get back to work locally,” he said. Cleveland State and Tennessee College of Applied Technology, Athens, offer the kinds of high tech education programs that will be useful to those seeking work at Tennessee Lithium. Classes come at little to no cost thanks to Tennessee Reconnect, a state program that relieves the financial burden for displaced workers, said Squires.
Dr. Tim Wilson, chairman of the Advanced Technologies Department at Cleveland State Community College, said students engage in hands-on learning and use critical thinking skills. “The technology industry changes rapidly, [so] they must also have the attitude of a lifelong learner.”
Community and Clean Energy
“We have worked very closely with Piedmont throughout this process and have been very pleased with the transparent, good faith nature of our dealings with the company,” said Blair. “We want businesses to invest not only in our community but also in the people. That’s very important to us,” said Ferguson, the McMinn County economic development chief. “Since Piedmont’s announcement, they’ve shown that they are going to be a huge community partner.”
Blair believes the business venture and good-paying jobs will result in a trickle-down effect to strengthen the local economy. “We are primed for growth and are hopeful that this project will be a shot in the arm for our local businesses,” he said. Blair and others also hope the lithium facility will encourage additional industries to relocate to Etowah.
“Clean energy solutions need lithium, and we believe Tennessee Lithium will play an important role in helping to advance a lower carbon future, while supporting American energy security interests and the domestic development of the EV and battery supply chains,” said Piedmont’s Sanders.
