Why North Carolina Is Critical To EV Battery Production In The US

When it comes to Electric Vehicles, the average person may think about long-range performance, or even the designs of the cars themselves. But one of EVs' most important elements is the battery and one of the most vital areas for battery production is the state of North Carolina. As well as being crucial to the production of chips and processors globally, the state is also critical to EV battery production because it's the home to Carolina Lithium.

This project is one of the only hard-rock lithium projects in the United States and was developed by Piedmont Lithium. Located in Gaston County, Carolina Lithium's site focuses on the prospect of doing everything in one place, from the initial mining and refining of the raw material to the production of lithium hydroxide. This non-organic substance is a necessary component of EV batteries. By keeping everything in-house, the project keeps costs down and gives carmakers in the states a more secure supply of EV battery material.

Carolina Lithium is ideally located in the Tin-Spoudumene Belt, an area of the country that led worldwide lithium production at one time. It's also near local battery manufacturers, and these companies have established infrastructure, as well as experienced crews ready to go. When Carolina Lithium is at full strength, it's expected to triple America's current output of lithium hydroxide.

Battery-grade lithium used for electric vehicles is primarily processed in China, which is dominating the market. Because of this, costs are high, timelines are long, and concerns over supply are always at the forefront. But EVs are becoming more popular with American drivers, and since the lithium hydroxide used in EV batteries is necessary, producing it in the United States is the ideal way of doing business.

However, as car manufacturers in the U.S. rush to get domestic solutions to their supply problems, China is tightening its grip on the lithium supply chain. China discovered a new hard-rock deposit in July of 2025 that could increase its already ample reserves. Located in the country's Hunan Province, this new find would make it easier for China to process and deliver EV battery materials. Since China is already far ahead of the U.S. in terms of EVs, it's clear that this new development could potentially keep them even further ahead.

The situation isn't improving for U.S. automakers, thanks to the high duties on imported graphite from China, which could directly impact American EVs. This is due to China tightening controls on exports in retaliation, which may increase costs and stretch timelines for EV battery material delivery. While the U.S. is working to increase production stateside, the transition will, unfortunately, take time, which car manufacturers already don't have.