Tennessee’s infrastructure funds to go toward lithium plant, launch inclusion consortium
Published 3:21 pm Thursday, October 19, 2023
- Engineering model of the Tennessee Lithium project, which received a grant through the Bipartisan Infrastructure Law. Rendering provided by Piedmont Lithium
Tennessee is expected to get about $8 billion from the Infrastructure Investment and Jobs Act to go toward needed infrastructure enhancements.
Nearly half a billion of that is planned to position the state for grid production and position Tennessee as a leader in the battery supply chain.
More than $141 million from the 2021 act, also known as the Bipartisan Infrastructure Law, will go toward the planned Tennessee Lithium facility in southeast Tennessee’s McMinn County. The facility is anticipated to produce 30,000 metric tons per year of lithium hydroxide for the domestic battery and electric vehicle market.
The project is expected to double the lithium hydroxide production capacity currently available in the United States.
“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,” according to the project summary. “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.”
Another $150 million in infrastructure funding is going to Novonix Anode Materials to build its first mass U.S. production site in Chattanooga. The facility is expected to produce 30,000 metric tons per year of graphite targeted at the electric vehicle industry.
“NAM will deploy its advanced, cost-effective and environmentally friendly process technology to provide a (approximately) 60 percent reduction in carbon intensity relative to the traditional Chinese synthetic graphite,” according to its project description.
Through early September, $403.1 million had been allocated to the state for clean energy, energy efficiency and power for projects that also include weatherization, and $15.2 million to prevent outages and make the power grid more resilient, according to White House data.
Overall, $4.7 billion has been announced so far to head to Tennessee, with more than 241 specific projects identified for funding.
Since the law passed in late 2021, approximately $319 million has been announced for clean water, and $3 billion has been announced for transportation — to invest in roads, bridges, public transit, ports and airports, according to a White House update.
Airport grants
Tennessee has received approximately $148.3 million for grants made available to airports so far.
The city of Crossville will use approximately $620,000 to update the terminal at Crossville Memorial Airport with accessible restrooms and Americans with Disabilities Act-compliant ramps. The renovation, which is currently underway, also expands meeting areas at the growing airport.
“We have business jets flying in, and that’s important for economic development,” Crossville City Manager Greg Wood said.
The city’s airport operator, Azure Flight Services, is expanding into the charter flight business.
“You’re going to be able to catch charter flights out of here. We’ll have jet maintenance here,” Wood said.
A new hangar is under construction to provide research and development space for aviation technology startup Whisper Aero.
“We’re going to be a hub of electric aircraft,” Wood said.
The airport will install electric charging stations, a unique offering in the region.
A 2021 study by the Tennessee Department of Transportation estimated the Crossville airport supported almost $6 million in economic impact through jobs and local spending.
College grants
Among other projects from federally funded packages is aimed at historically minority colleges and universities that seek to bolster diversity in agriculture and human sciences careers.
Tennessee State University received $18 million in federal funds to launch an inclusion consortium with other colleges and groups to help promote diversity in workforce development in agriculture, natural resources and human sciences.
“All of those sectors are not very diverse, and there’s not a lot of representation with African Americans, Hispanics, even Native populations,” said John Ricketts, a professor for TSU’s agriculture department. “If we want food security for all, we need everybody involved in all the different phases of food security.”
Objectives for the funding are to provide student scholarship opportunities, enhance outreach to underserved K-12 schools and enhance student engagement through internships that include international and study abroad.
The TSU consortium includes Alcorn State in Mississippi, Fort Valley State in Georgia and the University of Houston. Several other institutions (including the University of Tennessee, University of Tennessee-Martin and Vanderbilt) will help to accomplish TSU’s project goal of diversity in the industry.
“Every time we have a position in biotech or food science — those are big industries in Nashville — we don’t have enough people apply who are trained or who have a college degree in the area,” Ricketts said. “Agriculture, especially in Tennessee, is job plentiful so there’s tons of opportunities, especially for diverse candidates.”
Other plans
Additional infrastructure funding updates and highlights for Tennessee, per the White House:
• Roughly $813.3 million will provide reliable high-speed internet. According to the White House, more than 410,000 Tennessee households are saving on their monthly internet through the Affordable Connectivity Program.
• Approximately $651 million over five years aims to improve public transit. So far, $123.5 million has been allocated to improve public transportation options.
• Schools in Tennessee have been awarded $16.8 million through the Environmental Protection Agency’s Clean School Bus Program. Various communities in Tennessee were awarded $26 million for clean transit buses and improved bus service through Department of Transportation’s Low- and No- Emission Bus and Bus and Bus Facilities Program.
• Tennessee is expected to receive roughly $88 million in formula funding over five years to support the expansion of electric vehicle charging in the state. To date, Tennessee has been allocated $31.9 million to build out a network of EV chargers across the state.
• An estimated $15.2 million has been received in the state for ports and waterways.
• $93.8 million has been allocated to Tennessee for infrastructure resilience against impacts of climate change, extreme weather events and other hazards like cyberattacks.
• Approximately $8.6 million has been allocated to Tennessee for capping orphaned oil and gas wells and reclaiming abandoned mine lands; $34.3 million has been allocated to cleaning up brownfield sites.
• $293 million is available to Tennessee to provide clean and safe water across the state through the EPA; $139 million is dedicated to lead pipe and service line replacement, with another $66.7 million for safe drinking water investments that can also support lead pipe replacement.
The Infrastructure Investment and Jobs Act passed the U.S. Senate by a bipartisan vote of 69-30 in August 2021, followed in November of that year with passage in the U.S. House on a vote of 228-206.
Tennessee congressional delegates voted along party lines. U.S. Sen. Bill Hagerty, in a statement at the time of the vote, criticized the legislation.
“Today, by passing the infrastructure bill, which is the gateway to big-government socialism, Democrats took another step on their pathway to radically transform America into a nation of government dependency, rather than a nation of opportunity,” he said in the statement.