US re-evaluating $2.3B loan for Thacker Pass lithium mine in Nevada
The Trump administration is re-evaluating a $2.3 billion loan approved by President Joe Biden for the development of a Nevada lithium deposit, according to people familiar with the matter who asked not to be named discussing internal business.
The record-high loan to Lithium Americas Corp., finalized in 2024, would have provided most of the capital for the construction of a processing plant adjacent to the company’s Thacker Pass mine, on one of country’s largest lithium deposits.
The Energy Department’s review of the financing comes after Greg Beard, a senior advisor in the Loan Programs Office, warned that the project could fail to draw customers amid competition from cheaper Chinese lithium, the Washington Free Beacon reported.
The agency is now pushing General Motors Co. — which holds a 38% interest in the mine — to sign a binding offtake agreement for the mine’s production, according to one person. GM last December acquired a stake in the project for $625 million in total cash and letters of credit.
In a statement, the agency said it is working “to ensure our limited taxpayer resources are used to advance best interests of the American people and generate a return on investment.”
The Energy Department loan is a necessary piece of the project’s financing, GM said in a statement.
“During his first term President Trump strongly supported the development of Nevada’s Thacker Pass mine,” said a GM spokesperson. “We’re confident in the project, which supports the administration’s goals, and have committed almost $1 billion to its development, including a nearly $200 million letter of credit.”
Lithium America’s head of government affairs, Tim Crowley, said the company continues to “work closely with the DOE and our partner GM toward first draw on the DOE loan and will provide an update at the appropriate time.”
The re-evaluation comes amid a broader Energy Department review of financing made through the agency’s $400 billion green bank.
(By Ari Natter and David Welch)
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3 Comments
Rob Swanson
What about Germanys Air and Salt battery and Hondas new hybrid petro/electric? Will lithium be obsolete?
William J. Jackson
Sodium is mature, but has a lower energy level that will make it a winner for stationary power, and OK for a safer automotive battery at that lower power level. Aluminum has both power and price advantages, recent work on dendrite suppression will make it a clear winner ob price and safety – if the newer electrolytes suppress dendrites?
Mary B Knopik
I hold 16 US Copyrighted books, an award winning journalist. I AM A LAC STOCK HOLDER. This is a good investment. All governing bodies are working together to maintain the future preservation of the land while respecting the native community. This project is well thought out.