DOE Approves $2.26 Billion Loan for Lithium Americas’ Nevada Mine
Lithium Americas (TSE: LAC) has secured a $2.26 billion federal loan to build what’s set to become the nation’s premier lithium production facility. The Department of Energy’s commitment will help the Vancouver-based company transform a remote stretch of Nevada landscape into a powerhouse of battery metal production.
The Thacker Pass facility in Humboldt County has the potential to revolutionize domestic lithium supply chains. Production in its first phase, expected to start in 2027, is expected to support lithium needs for up to 800,000 EVs annually. This makes the United States a serious contender in the global battery materials market dominated by Chinese producers.
Automotive giant General Motors Co (NYSE: GM) has strengthened its commitment to the project through a joint venture agreement. The partnership grants GM a 38% ownership stake for $625 million in total cash and letters of credit, including a $195 million letter of credit facility. This arrangement is part of GM’s broader investment in the mine, which has reached nearly $1 billion.
The ambitious venture hasn’t come cheap. Project costs have swelled to $2.93 billion, incorporating extensive engineering work, comprehensive worker accommodations, and union labor agreements. During the three-year construction phase, the project will generate 1,800 construction jobs, eventually transitioning to a permanent workforce of 360 employees who will oversee operations for four decades.
“The Biden-Harris Administration recognizes mineral security is essential to winning the global clean energy race,” White House National Climate Advisor Ali Zaidi said, underscoring the project’s strategic importance. The development overcame initial resistance from environmental groups, ranchers, and Native American communities, receiving its final approvals after extensive legal deliberations.
The federal loan package features a 24-year repayment schedule, with interest rates aligned with Treasury benchmarks. Company executives anticipate breaking ground on major construction phases shortly, with Lithium Americas CEO Jon Evans emphasizing the project’s role in strengthening domestic supply networks and reducing overseas dependence for critical battery materials.
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