ETOWAH, TN—Piedmont Lithium is building a $600 million factory here that is scheduled to start production in 2026 and could produce enough lithium hydroxide to make 600,000 batteries annually.

“We like the proximity to the ‘Battery Belt,’” says Malissa Gordon, the company’s vice president for government relations, referring to the geographical name where an array of companies are locating to supply automakers, including Volkswagen in Chattanooga.