$90M Defense Department deal puts Albemarle Corp. closer to reopening NC lithium mine

Charlotte-based Albemarle Corp. is moving closer to reopening a lithium mine and production in North Carolina following an infusion of federal funding.

The U.S. Department of Defense approved a $90 million grant in September to support reopening the dormant lithium mine in Kings Mountain, which sits about 30 miles west of Charlotte. The money will be used to purchase a fleet of mining equipment, according to Albemarle.

Lithium is a relatively rare soft, light metal found in rocks and subsurface fluids. It’s used to power everything from electric cars to cameras, laptops and cell phones.

The Biden administration calls lithium a “critical mineral” to breaking dependence on China and for sustainability. And North Carolina and the Charlotte region are positioning themselves to become leaders in the EV market and become a major source for lithium.

Albemarle is the world’s top producer of lithium with mines in Australia, Chile and Nevada. The company told The Charlotte Observer that the mining project is in the development phase, which includes environment, social and feasibility studies. The next step will be filing local and state permits.

It’s too early in the development of the project to say how much it will cost, the company said, but noted, ”projects like this can cost hundreds of millions of dollars.”

The Kings Mountain mine in Cleveland County, which operated from 1938 to 1988, contains one of the few known hard rock lithium deposits in the U.S. It is expected to play a critical role in establishing U.S. leadership in the electric vehicle evolution, Albemarle said.

Construction to reopen the mine could start in late 2025, depending on permit approvals, with production beginning in 2026.

Why the NC lithium mine matters

The $90 million federal Technology Investment Agreement was issued to Albemarle under the Defense Production Act Title III, which designates lithium as a critical mineral.

Albemarle’s Kings Mountain plan supports President Joe Biden’s directive to strengthen domestic battery capacity, including increasing domestic mining and processing capacity for battery materials, Anthony Di Stasio, director of the Defense Manufacturing Capability Expansion and Investment Prioritization office, said in a statement.

As demand for electric vehicles surges, securing U.S. resources is crucial, Albemarle’s President of Energy Storage Eric Norris said in a statement. The Kings Mountain site is expected to initially support the manufacturing of 1.2 million electric vehicles annually.

“Lithium is an essential ingredient in our sustainable energy future,” Norris said in a statement.

In September, Texas-based Caterpillar and Albemarle signed an agreement that will pioneer sustainable mining technologies and operations, according to the companies, using “next-generation, battery-powered mining equipment.”

That collaboration supports Albemarle’s efforts to establish Kings Mountain as the first zero-emissions lithium mine site in North America. The companies also plan to collaborate on research and development of battery cell technology and recycling.

The lithium demand is not only being driven by the EV market. It powers everything from consumer electronics to life-saving medical devices, as well as strengthening glass for smartphone screens, Albemarle said.

The Kings Mountain campus is staffed by about 300 employees and contractors. If the mine project is approved, Albemarle expects the workforce to more than double.

All about Albemarle Corp.

Albemarle also has big expansion plans in South Carolina, as well as in Charlotte.

In March, Albemarle said it would invest $1.3 billion and create more than 300 jobs to build a lithium hydroxide processing facility on 800 acres in Richburg, S.C., in Chester County. The site will support demand for electric vehicles and other lithium-ion battery uses, according to Albemarle.

And last December, Albemarle said it would invest $200 million and create at least 200 jobs to establish an advanced materials research and development facility in Charlotte’s University City area focused on lithium and battery tech. The facility is expected to open in early 2025.

Albemarle also has faced recent legal problems and federal investigations.

In September, the company agreed to pay more than $218 million in penalties after admitting to U.S. Justice Department and Securities and Exchange Commission investigators it used third parties to bribe government officials for business with state-owned oil refineries in Vietnam, Indonesia and India. The schemes took place between 2009 and 2017 and violated the Foreign Corrupt Practices Act. Albemarle’s payment resolved the self-reported investigation and the company has since changed how it monitors third parties. “Those responsible for these past actions were held to account and separated years ago,” Albemarle said in a statement.

Albemarle relocated its headquarters from Baton Rouge, Louisiana, to Charlotte in 2015, specializing in lithium, bromine and refining catalysts. It has 5,400 employees, including 463 workers at its global headquarters in Charlotte, and serves customers in 100 countries.

Last Wednesday, Albemarle reported net sales of $2.3 billion for the third quarter ending Sept. 30, an increase of 10% from the same quarter last year.

North Carolina at ‘epicenter’ of clean energy

Lithium and the rapidly growing EV industry is at the forefront in North Carolina.

Gov. Roy Cooper has been focused on the emerging clean energy economy that includes fostering market innovation and development to advance clean energy technology and a skilled workforce.

Last Wednesday, the Siemens Foundation chose North Carolina as a partner in the EVeryone Charging Forward program, a $30-million, 10-year EV industry workforce training and development initiative.

The state’s EV industry moves are drawing international attention too, from an all-electric vehicle dealership that opened in SouthPark to vehicle charging station makers, including Alpitronic based in Italy setting up headquarters off West Park Drive in Charlotte.

A startup called Atom Power plans to invest $4.2 million to expand its Huntersville electric vehicle charging technology company.

And in a major announcement on Tuesday, Japanese carmaker Toyota said it is investing another $8 billion to its under-construction North Carolina lithium-ion battery plant in Randolph County. It will add eight battery production lines to six already planned and create another 3,000 new jobs near Liberty. Toyota’s total investment will be $13.9 billion.

Although Toyota currently sources lithium from outside the U.S., the automaker is looking for domestic sources of lithium, Toyota Battery Manufacturing North Carolina President Sean Suggs president said.

The Kings Mountain lithium mine could be a potential source for Toyota.

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