The U.S. Department of Energy announced a $2.26 billion loan to Lithium Americas on Monday LAC approved for construction of Thacker Pass lithium mine in Nevada. This is one of Washington’s mining industry’s largest investments and part of a broader push to boost critical mineral production.
The loan, which was tentatively approved in March (link), is a key part of US President Joe Biden’s efforts to reduce dependence on lithium supplies from China, the world’s largest processor of the metal for electric vehicle batteries. Biden officials approved a similar lithium project (link) last week, developed by ioneer 
INR is developed.
The Thacker Pass project is expected to be operational later this decade and is a key supplier to General Motors 
GM, which increased its investment in the mine to nearly $1 billion (link) earlier this month.
“The Biden-Harris administration recognizes that mineral security is essential to winning the global race for clean energy,” said Ali Zaidi, the White House national climate envoy.
Former President Donald Trump approved the mine (link) shortly before he left office. Initial construction at the site south of the Nevada-Oregon border began last year after the company won a lengthy and complex legal battle (link) brought by conservationists, ranchers and indigenous communities.
Once the loan closes, Vancouver-based Lithium Americas plans to begin construction of the mine – a process that could take three years or longer. The first phase of the mine is expected to produce 40,000 tons of battery-grade lithium carbonate per year, enough for up to 800,000 electric vehicles.
The project is expected to employ approximately 1,800 people during the construction phase and provide 360 full-time jobs once the mine is operational. The loan has a term of 24 years, with interest rates based on the US Treasury interest rate when the individual tranches are used.
“This important loan helps us reduce dependence on foreign suppliers and secure America’s energy future,” said Jon Evans, CEO of Lithium Americas.
The cost of the mine was increased to nearly $2.93 billion from an earlier estimate of $2.27 billion due to rising engineering costs, an agreement to use union workers and the company’s decision to work in the remote mine Region to build accommodation for the workers and their families.
