Piedmont Lithium, headquartered in Belmont, has announced a significant workforce reduction and a series of cost-cutting initiatives in response to the current downturn in lithium prices. The company, listed on NASDAQ under the ticker PLL, reported the termination of 16 employees, constituting 27% of its workforce, as part of a broader strategy to streamline operations and reduce expenditures.
The adjustments are specifically aimed at conserving resources and managing the development pace and capital expenditure across its projects in the United States, including the Carolina Lithium project situated in Gaston County, which is currently undergoing the permitting process. The company plans to defer various costs, including property acquisitions, engineering expenses, and other development-related outlays, as part of a comprehensive plan to achieve $10 million in annual savings.
Following the workforce reduction, Piedmont Lithium’s team now comprises 44 individuals, and the company concluded the previous year with a cash reserve of $72 million. This move aligns with actions taken by other local entities, such as Charlotte-based Albemarle Corp., which also recently announced cost reduction measures in light of the declining lithium market.
Keith Phillips, President and CEO of Piedmont Lithium, highlighted the necessity of these actions to ensure the company’s longevity and adaptability in a fluctuating market. He noted the historical cyclicity of the lithium market, with periods of price troughs typically followed by surges to new highs.
The Carolina Lithium project, Piedmont Lithium’s primary venture, has faced regulatory hurdles, with the permitting process extending over two years. The company anticipates a forthcoming decision on the permit, which could potentially pave the way for the project’s advancement.
Local community members and Gaston County officials have expressed concerns about the potential environmental and property impact of the mining operation, despite the company’s presentations and efforts to secure support. Piedmont Lithium remains hopeful of obtaining necessary approvals within the year, with plans to commence construction in 2025 and operationalize the mine by 2027.
In addition to its domestic endeavors, Piedmont Lithium is engaged in lithium mining projects in Canada and Ghana and has recently secured the final permit to construct a lithium hydroxide manufacturing plant in Tennessee. 
