Climate provisions in the Inflation Reduction Act put the U.S. back on track toward significant emissions reductions, potentially reducing greenhouse gas output by 40% of 2005 levels.

But one miner warned that when it comes to the transportation sector, domestic resources for lithium, the most critical mineral used for electric vehicle production, may not be sufficient enough to meet some of the most ambitious targets. The Biden administration, for instance, aims to slash the sale of gas-powered vehicles to 50% of all new purchases by 2030.

“Yes, we’ll [eventually] have enough, but not by that time,” Keith Phillips, CEO of Piedmont Lithium (PLL), said in an interview with Yahoo Finance Live (video above). “There’s going to be a real crunch to get the material. We don’t have enough in the world to turn that much [lithium] production in the world by 2035."

With the average electric car battery requiring roughly 8-10kg of the metal, lithium remains a crucial material in the transition to emission-free vehicles. Growing demand has caused the price of lithium carbonate to nearly double this year alone, and the IEA projects demand to grow by 40 times in the next two decades, with a majority of that supply coming from outside of the U.S.

That has complicated climate targets set by the Biden administration. The president has called for half of all new vehicles sold by 2030 to be electric, setting aside billions of dollars in the Inflation Reduction Act (IRA) to incentivize drivers to make the shift.

But those same tax credits come with requirements calling for parts and components to be largely sourced in North America, leading some EV makers to push back against the goals on the grounds that they are not realistic.

Piedmont Lithium is looking to cash in on the demand, as one of only a handful of U.S.-based lithium miners. On Thursday, the mining company announced plans to open a lithium processing operation in Tennessee, with construction set to begin in 2023.

Once fully operational, the plant will process 30,000 metric tons of lithium per year. The company is also planning another plant in North Carolina, which will allow the firm to supply lithium for 1 million electric vehicles per year.

“The world has changed,” Phillips said. “We're now in an era where everyone's going to want an electric car. The car companies can't make them fast enough, and people are now looking for the lithium they need for the batteries to go in those electric cars.”

While carmakers like General Motors (GM) have rushed to secure partnerships with domestic mining operations in anticipation of the demand, the Albemarle (ALB) Silver Peak mine in Nevada remains the only operational lithium mine with meaningful output.