Lithium America’s $2.26 billion loan from the U.S. Department of Energy (DOE) for its Thacker Pass Mine finalized on Oct. 28. It is one of the largest mining investments by the federal government and part of a broader effort to increase critical minerals production.
“We’re pleased to have the Department of Energy’s support to advance Thacker Pass to production and significantly improve domestic output of critical lithium supply to meet the growing domestic need,” Jonathan Evans, President and Chief Executive Officer of Lithium Americas said.“This essential loan helps us reduce dependence on foreign suppliers and secure America’s energy future.”
The news of loan comes less than a week after the U.S. Department of the Interior (DOI) issued its final Record of Decision to ioneer’s Rhyolite Ridge lithium boron project, also in Nevada.
The DOE loan was originally approved in Mach and will allow Lithium America’s to make its final investment decision on the project. Earlier this month Lithium Americas and General Motors (GM) entered into a new investment agreement that will establish a joint venture for construction and operation of the Thacker Pass Mine in which GM will contribute $625 million to the joint venture and will own 38 percent of the project.
“We have substantially de-risked project financing for Phase 1 and continue to work closely with General Motors following our announcement of the asset-level joint venture,” said Evans. “We deeply appreciate the U.S. government’s support as we develop Thacker Pass to become North America’s largest lithium operator and continue collaborating with all our stakeholders to bring shared success for our company, local communities and our country.”
Construction of Thacker Pass Phase 1 is expected to create approximately 1,800 construction jobs and 350 permanent full-time operations jobs and will help support the U.S. to secure a domestic lithium supply chain, reducing reliance on foreign critical minerals.
“The Biden-Harris Administration recognizes mineral security is essential to winning the global clean energy race,” said Ali Zaidi, the White House national climate advisor.
Former President Donald Trump had permitted the mine just before leaving office. Initial construction at the site, just south of Nevada’s border with Oregon, started last year after the company won a long-running and complex court case brought by conservationists, ranchers and Indigenous communities.
With the loan now closed, Vancouver-based Lithium Americas plans to start major construction, a process that could take three years or longer. The mine’s first phase is expected to produce 40 kt/a (44,000 stpy) of battery-quality lithium carbonate, enough for up to 800,000 EVs.
The mine’s cost had been increased from a previous estimate of $2.27 billion to nearly $2.93 billion due to higher engineering costs, an agreement to use union labor, and the company’s decision to build a housing facility for workers and their families in the remote region.
