U.S. miners and battery recyclers are urgently seeking to finalize government loans worth billions before January, driven by fears that former President Donald Trump might block funding for critical minerals projects if reelected. The mining industry, traditionally conservative, is now looking to Washington for support amid falling prices for lithium, nickel, and other minerals, as well as disappointing electric vehicle (EV) sales that have unsettled private financiers.
Under President Biden, the Department of Energy’s Loan Programs Office (LPO) has conditionally approved nearly $25 billion in loans for 21 companies, including prominent players like Li-Cycle and Redwood Materials, which are focused on recycling batteries and processing minerals for EVs. However, these loans still require final approval, which can be time-consuming.
The urgency is compounded by Trump’s stated intention to “end the electric vehicle mandate” and proposals from his administration to close the LPO. Mining executives fear that without these loans, many domestic critical minerals projects could stall, jeopardizing the U.S. supply chain for EVs as competitors linked to Beijing flood the market with cheaper metals.
One executive noted Trump’s unpredictability as a significant concern, emphasizing the need to secure loans quickly. LPO staff have indicated that many applications may not be finalized before January, pushing the responsibility to the next administration. The Energy Department maintains that the loan program has historically continued through administration changes.
As the LPO expands its workforce, the urgency for miners to secure funding remains critical, especially as they navigate a landscape shaped by both market fluctuations and political uncertainties.