U.S. DOE Approves $2.26 Billion Loan for Lithium Processing at Thacker Pass

The U.S. Department of Energy (DOE) has finalized a $2.26 billion loan to support a lithium processing facility at Thacker Pass, Nevada. The loan, provided to Lithium Americas' subsidiary, Lithium Nevada, is part of the Biden-Harris Administration's Investing in America initiative. The facility, next to the largest confirmed lithium resource in North America, will produce 40,000 tonnes of battery-grade lithium carbonate annually.

The Thacker Pass project aims to boost the U.S. clean energy economy, as lithium carbonate is crucial for electric vehicle (EV) batteries. Once operational, the facility is expected to create 1,800 construction jobs and 360 permanent jobs, enhancing the domestic supply chain for critical minerals.

The project is seen as a key step in reducing U.S. dependency on foreign critical minerals. It aligns with goals to advance domestic EV production and achieve 50% zero-emission vehicles by 2030. General Motors, a primary buyer, is supporting the project's development, which could support battery production for up to 800,000 EVs annually.

The DOE loan is part of the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which has backed multiple projects to strengthen the EV supply chain since 2022.

Lithium Nevada has also committed to a Community Benefits Plan, ensuring engagement with local tribes and labor groups. Construction will involve union labor under a National Construction Agreement, focusing on employing Native Americans and underrepresented groups.

This project supports climate goals and aligns with the Inflation Reduction Act's "Made in America" provisions. By building a domestic lithium supply, the U.S. aims to reduce reliance on foreign sources and advance clean energy.