Reno, Nevada – The Biden administration has approved a conditional loan of over $2 billion for the construction of a controversial lithium mine in Nevada. This mine, located near the Oregon border, boasts the largest known deposit of lithium in the United States, a crucial component in the production of electric vehicle batteries.
The loan, agreed upon by the U.S. Energy Department, will support Canada-based Lithium Americas in covering costs for its open pit mine at Thacker Pass. The department highlighted the significance of the project, emphasizing Thacker Pass as a valuable resource for strengthening U.S. energy security and advancing clean energy initiatives.
Energy Secretary Jennifer Granholm expressed enthusiasm for the project, stating that the loan will contribute to leveling the global playing field and accelerating clean energy manufacturing across the country. The loan’s approval is contingent upon the project’s thorough review under the National Environmental Policy Act.
Thacker Pass is expected to play a pivotal role in the production of lithium carbonate, essential for manufacturing batteries for up to 800,000 electric vehicles annually. Furthermore, the project is projected to reduce gasoline consumption by 317 million gallons per year, aligning with President Biden’s renewable energy goals.
Lithium Americas, the company behind the project, noted that the loan would cover a significant portion of the initial phase, which is estimated to cost $2.93 billion. Other investments, such as the conditional agreement by General Motors Co. to invest $650 million in the project, indicate growing support for the initiative.
Despite opposition from environmental groups and tribal leaders, the legal battles surrounding the mine appear to be subsiding. The project’s completion is scheduled for 2028, with initial construction activities well underway. The anticipated economic benefits and employment opportunities have garnered support from within the Fort McDermitt Paiute Shoshone Tribe, emphasizing the potential positive impact of the Thacker Pass project.