The US Energy Department is in talks to lend a record $1 billion to the developer of one of the country’s largest lithium deposits in a push to build out a domestic supply of critical minerals.
Biden is walking a fine line by trying to balance the raw-material demands of the energy transition against campaign promises to protect the environment. China has long dominated global supplies of commodities crucial to electric vehicles, prompting the Biden administration to extend billions of dollars in grants and tax incentives to encourage domestic production. The Loan Programs Office has been lending to renewables projects and factories rather than upstream mines, which are generally more challenging and take longer to build. The commitments to the Thacker Pass project follows a $700 million conditional loan to Ioneer Ltd.’s Rhyolite Ridge lithium-boron project in Nevada, a prospective supplier to Ford Motor Co. and Toyota Motor Corp. The Energy Department also previously provided $107 million to graphite supplier Syrah Resources Ltd. for an anode plant in Louisiana and $2 billion to Redwood Materials Inc. to expand a battery materials manufacturer in Nevada.
Thacker Pass raised the ire of environmentalists and tribal groups who unsuccessfully argued in court that it posed a threat to the surrounding landscape and was inadequately vetted.
Lithium Americas said in February it had received a letter of substantial completion from the Energy Department for its application to support the financing of Thacker Pass. The company said it expected the loan program to provide up to 75% of Thacker Pass’ total capital costs for construction, should a loan be issued.
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U.S. Weighing Record $1 Billion Loan for Massive Lithium Mine in Nevada
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