Energy Department conditionally approves $2.26 billion loan for huge lithium mine in Nevada
RENO, Nev. — The U.S. Department of Energy has conditionally approved a loan of more than $2 billion to a company building a lithium mine in Nevada to help meet rising demand for a key element in the production of electric vehicle batteries, a key component of the Biden administration’s sustainable energy agenda. .
The ministry agreed Thursday to provide the $2.26 billion conditional loan to Canada-based Lithium Americas to help cover construction and related costs of an open-pit mine deeper than the length of a football field near the Oregon line cover.
Department officials said the loan would help finance construction of a lithium carbonate processing plant at the Thacker Pass mine, about 200 miles (322 kilometers) north of Reno.
“The project is located adjacent to a mine site that contains the largest proven lithium reserves in North America,” DOE said in a statement.
The Energy Department said the loan is contingent on the loan program’s review of the project under the National Environmental Policy Act.
“Today’s announcement reinforces the Biden-Harris administration’s approach to strengthening America’s supply chain of critical materials, which is essential to building America’s clean transportation future and improving our national and energy security,” the department said Thursday .
President Joe Biden’s renewable energy agenda, aimed at reducing America’s dependence on fossil fuels to reduce greenhouse gas emissions, is expected to be a key issue in his re-election bid against former President Donald Trump, who has said he would concentrate on drilling for more oil. .
Lithium Americas said the loan would cover the vast majority of the first phase of the Thacker Pass project, now estimated to cost $2.93 billion. Last January, General Motors Co. voted. conditionally agreed to invest $650 million in the project.
The conditional commitment to the government loan “is an important milestone for Thacker Pass, which will help meet growing domestic needs for lithium chemicals and strengthen our nation’s security,” said Jonathan Evans, President and Chief Executive Officer of Lithium Americas .
“The United States has an incredible opportunity to lead the next chapter of global electrification in a way that both strengthens our battery supply chains and ensures that the economic benefits are focused on American workers, businesses and communities,” he said.
The Energy Department said lithium carbonate from Thacker Pass could support battery production for up to 800,000 electric vehicles per year, avoiding the consumption of 317 million gallons (1.2 billion liters) of gasoline per year.
Environmentalists and tribal leaders in the area have fought for nearly two years against the mine, which they say is adjacent to the site where more than 20 Native Americans were murdered in 1865. But a federal judge in Reno dismissed the latest legal challenges in December, and tribal leaders said they would drop future appeals.
Lithium Americas said site preparation has been completed, including all site clearances, commissioning of a water supply system, improvements to site access and site infrastructure.
The company said the latest estimated total cost of Phase 1 construction has been revised upward to $2.93 billion based on several factors, including the use of union labor for construction, updated equipment pricing and the development of an all- inclusive housing facility for construction workers.
The company said it spent $193.7 million on the project in the year ended December 31. Mechanical completion of phase one is scheduled for 2027, with full production expected sometime in 2028.