One of the largest U.S. lithium projects recently cleared a key permitting milestone after lengthy delays. But it’s just one step in a nation where mine permitting is a key choke point for the Biden administration’s ambitions to ramp up domestic production of metals crucial to the energy transition.
North Carolina-based Piedmont Lithium (NASDAQ:PLL) recently received a mining permit from the state for its lithium mining, concentrating and refining operation.
The project has faced at least three years of local opposition over concerns that it could pollute drinking water.
“Although this is largely company-specific news, any good news on permitting in (the) U.S. is good for domestic lithium production in general,” Simon Clarke, CEO of American Lithium Corp. (NASDAQ:AMLI), told Benzinga.
The U.S. has earmarked billions of dollars to build up a battery supply chain that isn’t dominated by China. Tax credits are available for companies that build battery cells or modules domestically, as well as for companies that mine battery metals.
But mines take a long time to develop. The permitting process eats up a large portion of the time. The National Mining Association blames what it deems an inefficient system in the U.S. that takes an average of seven and 10 years.
That compares to an average of just two years in Canada and Australia, nations with similar environmental protections in place. The White House and Congress are talking about mining reform on the federal level, but that will still leave state and local reviews for miners to negotiate.
“Although the U.S. government has provided strong financial incentives in the last couple years, the piece that does need overhaul is permitting, which is somewhat outdated and too slow especially if we want to significantly boost domestic production in the timelines needed to protect domestic industry and supply chains as part of overall energy security,” Clarke said.