Brandenburg – where the planned factory is located – agreed with Tesla to extend a deadline for paying security provisions of 100 million euros (122 million dollars) for possible remediation costs until January 15, the state’s Environment Ministry told dpa.

Tesla had not paid the security provisions by the initial deadline of December 17, although the state granted the manufacturer an early permission for further wood clearing and to install machinery.

The construction of the so-called “gigafactory” in Gruenheide were then paused.

In a letter of intent, Tesla assured Brandenburg it would pay security provisions for any early permissions it was granted, Environment Ministry spokesperson Frauke Zelt said.

While the form of payment is to be established until the new deadline, the Environment Ministry granted Tesla permission to continue working on certain parts of the construction site, the spokesperson confirmed.

Construction has so far proceeded based on temporary permissions, as a final decision by the state of Brandenburg is still pending, due to complaints by environmental groups and local residents.

A court recently ruled that Tesla may only clear trees on parts of the construction site, after an appeal by environmental groups against the wood clearing.

Activists and residents fear the clearing will have a negative impact on the area, especially on local species such as the protected sand lizard, as part of the construction is located in a water protection area.