Lithium Americas has announced that the U.S. Department of Energy (DOE) has provided a conditional commitment loan of $2.26 billion to support the development of its Thacker Pass project in Nevada. This funding is intended to facilitate the construction of processing facilities as part of the phase 1 plan, enabling the production of battery-quality lithium carbonate to meet the demands of electric vehicle (EV) batteries.
The Thacker Pass project is poised to become a significant source of lithium for EV batteries in North America, aligning with U.S. President Joe Biden’s initiatives to reduce reliance on Chinese lithium supplies. Construction at the project commenced in March 2023, with phase 1 targeting an annual production capacity of 40,000 tonnes of battery-grade lithium carbonate, sufficient for approximately 800,000 EVs annually.
The DOE loan, coupled with General Motors’ $650 million investment, will serve as the primary sources of capital for phase 1, which now carries an estimated cost of nearly $2.93 billion, up from the initial $2.27 billion projection in January last year. The project aims to achieve full operational capacity by 2028, with an annual production target of 80,000 tonnes.
Lithium Americas plans to extract lithium from a substantial clay deposit at Thacker Pass, a pioneering endeavor at a commercial scale. The DOE loan, sanctioned under the Advanced Technology Vehicles Manufacturing loan program, encompasses an estimated $290 million in interest over a three-year period.
This significant financial support underscores the strategic importance of domestic lithium production in advancing sustainable energy solutions and enhancing America’s position in the global EV market. The Thacker Pass project represents a pivotal step towards establishing a robust lithium supply chain within the United States, furthering the nation’s clean energy goals and technological innovation.