Piedmont Lithium Inc (ASX: PLL) shares are catching the eye on Monday with a very strong gain.
In morning trade, the ASX lithium stock is up 32% to 27 cents.
Image source: Getty Images
Why is this ASX lithium stock rocketing?
Investors have been buying Piedmont Lithium shares this morning in response to a major announcement relating to its Carolina Lithium project in the United States.
According to the release, the North Carolina Department of Environmental Quality's (NCDEQ) Division of Energy, Mineral, and Land Resources (DEMLR) has issued an approval of its mining permit for the construction, operation, and reclamation of the proposed lithium project.
The release notes that DEMLR provided the permit approval following a thorough review of the application submitted by Piedmont Lithium all the way back in August 2021.
This news will no doubt be a very big relief for shareholders. That's because there has previously been speculation that it wouldn't be approved after locals fought hard against it.
'An exciting day'
The ASX lithium stock's president and CEO, Keith Phillips, appeared to be delighted with the news. He said:
This is an exciting day for all of us at Piedmont Lithium. I would like to thank the leadership and staff at NCDEQ and DEMLR for their diligence in the process, as well as the members of our team who worked rigorously for more than two and a half years to ensure that every aspect of the Project met the state's high standards for approval.
Phillips also highlights that the project is well-positioned in the current environment thanks to its low costs. He also believes the project is highly strategic. The CEO adds:
We plan to develop Carolina Lithium as one of the lowest cost, most sustainable lithium hydroxide operations in the world, and as a critical part of the American electric vehicle supply chain. The Project is expected to contribute billions of dollars of economic output and several hundred jobs to Gaston County and North Carolina's growing electrification economy.
Carolina Lithium is a highly strategic project. Located within both the renowned Carolina Tin-Spodumene Belt and the U.S. Battery Belt, the Project is being designed as a fully integrated mining, spodumene concentrate, and lithium hydroxide manufacturing operation. There are currently no such integrated sites operating anywhere in the world, and the economic and environmental advantages of this strategy are compelling.
Despite today's strong gain, this ASX lithium stock remains down by two-thirds over the last 12 months.
