Tesla lithium supplier Piedmont Lithium has just secured mining approval in North Carolina, US. However, the American mining giant may still struggle with various challenges in establishing its future operation.
Mining permit approval
According to the press release, Piedmont Lithium has finally obtained the mining approval for the development, operation, and reclamation of its planned Carolina Lithium project in Gaston County, North Carolina.
The North Carolina Department of Environmental Quality’s Division of Energy, Mineral, and Land Resources officially granted the mining permit approval after it conducted a comprehensive evaluation of the project application Piedmont Lithium submitted on August 30, 2021.
Piedmont Lithium indicated that the mining permit is still “subject to conditions both customary and specific” to their type of project. It also remains conditional on the posting of a reclamation bond worth $1 million.
“This is an exciting day for all of us at Piedmont Lithium. I would like to thank the leadership and staff at NCDEQ and DEMLR for their diligence in the process, as well as the members of our team who worked rigorously for more than two and a half years to ensure that every aspect of the Project met the state’s high standards for approval.”
Piedmont Lithium President and CEO Keith Phillips
Challenges
Despite this recent significant advancement, Piedmont Lithium’s Carolina Lithium project may still encounter several impediments in the future.
Many people in nearby areas have reportedly raised concerns about the potential effect of the project on water and noise pollution, among others. These apprehensions are unsurprising, considering that the project will include both a Spodumene concentrator and a Lithium hydroxide conversion facility.
Piedmont Lithium expects the mine to be 500 ft deep. Therefore, it must still obtain a local zoning variance, which may cost over $1 billion.
The company has submitted applications for loans from the Department of Energy in the US under a program that its rivals like Lithium Americas have raised funding from.
Potential benefits
If Piedmont Lithium’s proposed mining operation in North Carolina actually transpires, the Carolina Lithium site would advance as one of the sole lithium production facilities in the country.
“We plan to develop Carolina Lithium as one of the lowest-cost, most sustainable lithium hydroxide operations in the world, and as a critical part of the American electric vehicle supply chain.”
Piedmont Lithium President and CEO Keith Phillips
The project can significantly boost the US’ electric vehicle battery supply chain amid the government’s efforts to cut its heavy reliance on China and other nations, potentially bolstering the shift to clean mobility.
