U.S. Department of Energy Backs Lithium Processing Project with $2.26 Billion Loan
The U.S. Department of Energy (DOE) has closed a $2.26 billion loan to Lithium Americas Corp's subsidiary, Lithium Nevada Corp, to support the construction of lithium processing facilities at Thacker Pass in Humboldt County, Nevada. The loan, part of the Biden-Harris Administration's Investing in America initiative, aims to finance the project located adjacent to the largest confirmed lithium resource in North America.
The Thacker Pass facilities are expected to produce approximately 40,000 tonnes of battery-grade lithium carbonate annually once fully operational. This production is intended to help meet the growing domestic demand for lithium, which is a critical material for electric vehicle (EV) batteries and renewable energy storage. In addition to supporting national energy goals, the project is also expected to create around 1,800 construction jobs and 360 permanent operational roles, providing an economic boost to the region.
Demand for lithium carbonate is set to rise significantly with the increasing adoption of electric vehicles. General Motors, a major EV manufacturer, is expected to be a long-term buyer of lithium carbonate from the Thacker Pass project, which could supply enough material for batteries in up to 800,000 EVs annually. This output would help avoid the consumption of approximately 317 million gallons of gasoline per year, advancing the Biden Administration's goal for half of all cars sold by 2030 to be zero-emission vehicles.
The DOE's support for the Thacker Pass project aligns with efforts to establish a sustainable domestic supply chain for critical materials, reducing U.S. reliance on foreign suppliers like China. The lithium produced will qualify for the Inflation Reduction Act’s Made in America benefits, making it a key source for domestic automakers. Moreover, Lithium Nevada Corp is expected to develop and implement a Community Benefits Plan (CBP), engaging with Indian Tribes and community stakeholders to ensure job creation and improve local community well-being.
The Thacker Pass project will also benefit from union labor agreements, specifically the National Construction Agreement with North America's Building Trades Unions (NABTU). This agreement aims to minimize construction risks, ensure skilled labor availability, and prioritize the hiring of local and regional workers, including Native Americans and residents of underrepresented communities.
The $2.26 billion loan is being issued through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which supports U.S. manufacturing of advanced technology vehicles and related materials. Since 2022, the ATVM Loan Program has issued multiple commitments to projects aimed at supporting and expanding domestic supply chains for electric vehicles, aligning with the Biden Administration's ambitious climate goals.
