Amidst Dropping Stocks Piedmont Lithium Downsizes.
GASTON COUNTY, NC (WNN) – As the lithium market takes a hit, Piedmont Lithium lays off 27% of its workforce. This development comes at a time when Piedmont’s stock is on a downtrend.ย
Erin Sanders, the Senior VP of Corporate Communications, told theย Charlotte Observerย that layoffs will cut Piedmont’s number of employees from 60 to 44.
According to a press release from Tuesday, February 6, 2024, these efforts could save the company up to $10 million. The company’s goal for Q1-2024 is to complete most of its cost-saving actions.ย
Piedmont closed out 2023, its first revenue-producing year, with $72 million in cash. The company has $38 million in marketable securities, which are investments or financial instruments that can be easily liquidated.
Keith Philips is the CEO and president of Piedmont. In the press release, he provided insight into the recent layoffs, citing them as unfortunate but necessary for the company’s long-term goals.
“As they say in the mining business, “the solution to low prices is low prices,” and announcements of capacity curtailments and new project deferrals have recently become commonplace with more likely to come.” said Philips.ย
These developments come as the lithium market has steeply declined in the past year.
“Lithium prices have fallen sharply, and the market consensus is currently negative. However, lithium has been a cyclical business over the past decade with trough markets in pricing generally followed by new record highs.” said Philips.ย
In the past month, Piedmont’s stock has hit recent lows. As of February 6, 2024, the company’s stock reached $11.91. This is the lowest Piedmont’s stock has gotten since 2020, according to the National Association of Securities Dealers Automated Quotations (NASDAQ).
Piedmont Lithium has been gradually working towards receiving mining permits for a proposed lithium mine in Gaston County. The site is off Hephzibah Church Road and sits right on the border of Cherryville.ย
The proposed mine is frequently debated in the Cherryville community. Stop Piedmont Lithium, an advocacy group in opposition to the company, took to Facebook to share the news.
“Piedmont Lithium already had a skeleton crew and then they laid off 27% of their workforce on Tuesday.” stated the post.ย
The company has pledged $10 million over the next 20 years to the City of Cherryville. This grant is for the city’s recreation department. It stipulates that Piedmont Lithium has exclusive naming rights to all recreational projects it funds.ย
Cherryville has come to rely on this grant for several upcoming projects, including an incoming splash pad. The money will also finance the salary of Cherryville’s new full-time Recreation Director, Lance Hudson. In the past, this grant partially funded the renovations to West Gate Park.
In an email statement, Keith Philips addressed the workforce cutbacks.
“Carolina Lithium is an important part of our global portfolio, and our workforce reduction, while unfortunate, does not negatively impact our project plans.” said Philips.
Additionally, he also stated that Piedmont could potentially hear a decision on its mining permit in the coming weeks.
Piedmont Lithium is not the only N.C. lithium company undergoing workforce cutbacks. Albemarle Corporation recently announced it would lay off 4% of its employees, according to theย Charlotte Observer.
In a press release, Albemarle said it aims to optimize its cost structure by “re-phasing organic growth investments.” Essentially, they intend to reallocate resources to ensure better financial performance. Albemarle’s stock rests at $112. This is the lowest Albemarle’s stock has been since 2020, similar to Piedmont.
Piedmont remains hopeful that the lithium market will bounce back.
“We have taken a series of measures we believe are judicious to protect shareholder value in this downturn, while remaining strategically positioned for the lithium market recovery that we foresee.” said Philips.
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