Tesla supplier Piedmont Lithium gets key North Carolina mining permit

By Ernest Scheyder

April 15, 2024 (Reuters) - North Carolina regulators have approved a state mining permit for Tesla to develop one of the largest U.S. sources of the key electric vehicle battery metal, although key financing and local regulatory challenges remain.
The approval from the North Carolina Department of Environmental Quality, which was announced by the company on Monday and is conditional on the posting of a $1 million reclamation bond, removes one major hurdle to Piedmont's plans to tap a large lithium deposit just outside Charlotte.
Shares in the company, which first applied for the permit in August 2021, rose 15.9% to close at $14.68 on Monday. The state in 2022 had turned down an application from an unrelated company to expand a quarry.
The go-ahead for the 500-foot-deep mine comes despite widespread opposition from neighbors worried about water, noise pollution and other potential problems.
The years-long opposition to the project, which would become one of the few lithium-producing sites in the U.S, illustrates broadening tension in the country, as resistance to living near a mine clashes with the potential of EVs to mitigate climate change.
Piedmont must still obtain a local zoning variance and financing for the project, estimated to cost more than $1 billion. The company has applied for U.S. Department of Energy loans via a program through which rivals ioneer [https://www.reuters.com/business/autos-transportation/us-offers-700-million-loan-ev-battery-material-project-2023-01-13/]
Asked when Piedmont would pay the reclamation bond, Piedmont CEO Keith Phillips told Reuters that the company is "taking steps to put the bond in place as soon as possible."
Piedmont agreed to a deal with Tesla last year to supply spodumene concentrate, a key raw material for making batteries, to the auto giant through 2025, with an option to renew it for another three years.

CHANGES TO DESIGN
The state review process involved the submission of thousands of pages of documents, multiple requests for additional information, and at least three deadline extensions for Piedmont.
As a condition of obtaining the permit, state officials are requiring the company to conduct regular water quality and water table levels tests, and to line a waste storage pit with a synthetic liner, a departure from the typical requirement for an earthen liner.
State officials had expressed "many concerns" about Piedmont's plans to discharge chemicals into the public sewer system, according to regulatory filings.