Belmont-based Piedmont Lithium reduced its workforce by 32% last month, a recent earnings report from the company shows.
With the action, Piedmont has reduced its workforce by 48% between February and October. The company says it expects to save $14 million this year. Piedmont isn't alone with financial problems. Charlotte-based Albemarle, the world's largest producer of lithium products, reported a $1.1 billion loss in the third quarter, citing falling lithium prices due to oversupply from China.
Albemarle's CEO said the company anticipates lithium prices will remain low, which resulted in the company cutting at least 6% of its global workforce. That move was expected to save Albemarle anywhere from $300 million to $400 million annually.
Piedmont's cutbacks come several months after it received an approved mining permit to mine for lithium in rural Gaston County in May.
As part of the conditions of the permit, Piedmont is required to sample surface water every two weeks, monitor water levels and pH levels weekly around above-ground storage areas and sample a groundwater monitor well network near in-pit rock storage.
Acquiring the permit brought Piedmont Lithium one step closer to making its mining operation a reality but the company still requires further permits from the North Carolina Division of Air Quality. The company is pursuing a permit that will allow it to mine up to 60,000 tons of lithium hydroxide at the Gaston County facility.
The massive project has divided Gaston County residents for years, but many have been afraid to speak on the record because of how much money the project could potentially bring to Cherryville.
"I think we're a silent majority," one opponent said. "A lot of people are afraid to say anything about it because they are bringing a lot to the town as far as money."
Piedmont Lithium is promising hundreds of jobs and an economic impact in the billions if the mine is approved. Demand for lithium has surged in recent years for electric vehicle batteries.