Piedmont Lithium, a supplier for Tesla, has received approval to establish mining operations in North Carolina. However, there are still potential obstacles to overcome.
The approval is contingent upon posting a $1 million reclamation bond, and concerns have been raised by nearby residents regarding water and noise pollution, as well as other environmental and community issues. Notably, North Carolina has not previously denied a mining permit application.
The planned site is set to include a Lithium hydroxide conversion facility and a Spodumene concentrator. Additionally, the mine is anticipated to reach a depth of 500 feet, and Piedmont requires a local zoning variance, with estimated costs exceeding $1 billion.
Piedmont Lithium has also sought loans from the U.S. Department of Energy, utilizing a program previously accessed by competitors such as ioneer and Lithium Americas. CEO Keith Phillips expressed the intention to develop Carolina Lithium as a highly cost-effective and sustainable lithium hydroxide operation, projecting significant economic output and employment opportunities in Gaston County and North Carolina.
If successful, the Carolina Lithium site would be among the few lithium-producing sites in the U.S., which aligns with the automotive industry’s efforts to enhance its raw mineral supply chain while reducing dependence on China and other nations. The agreement is anticipated to extend until 2025, with the option for a three-year extension.