Piedmont Rushes To Supply Tesla With Lithium But North Carolina Execs Flume

In its quest to build one of the largest lithium mines in the United States, Piedmont Lithium Inc has overlooked one crucial constituency: its North Carolina neighbors. Piedmont last autumn signed a deal to supply US electric automaker Tesla Inc. with lithium sourced from its deposits in North Carolina, sending the company's stock up tenfold, Ernest Scheyder reported for Reuters.

Piedmont has also hired investment banks to find investors for its $840 million project, which would include an open-air pit more than 500 feet (152 m) deep and facilities to produce lithium-based electric vehicle (EV) battery chemicals.

The company, however, has not applied for a state mining permit or a necessary zoning variance in Gaston County, just west of Charlotte, despite telling investors since 2018 that it was on the verge of doing so.

Five of the seven members of the county's board of commissioners, who control zoning changes, say they may block or delay the project because Piedmont has not told them what levels of dust, noise and vibrations will occur, nor how water and air quality would be affected.

"Piedmont has sort of put the proverbial cart before the horse," said Tom Keigher, chair of the board of commissioners. "Why in the world would they make this deal with Tesla before they even have approval for the mine?" Piedmont said it waited to approach officials in order to refine its plans - it published a third iteration last month - and to secure a customer to show that the mine could stay open for its projected 20-year lifespan.

"We finally have a project to debut and really talk about," said Keith Phillips, Piedmont's chief executive officer. "Maybe it would have been better had (commissioners) been in the loop constantly. We didn't really have the time or resources to do it and we didn't even know what to tell them, until now."

The deteriorating relationship between Piedmont and county leaders reflects broader tension in the United States as resistance to living near a mine clashes with the potential of EVs to mitigate climate change.

Piedmont has already spent $58 million on the project, which would produce about 30,000 tons of lithium annually, enough to make about 3 million EVs. The company originally planned to put its chemical plant in a neighboring county, but now intends to build it near the mine, a step that should reduce truck traffic. Piedmont also plans to crush rock in the mine pit, alleviating dust, and incorporate solar power.

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