Sky21 – Lithium Americas has gotten conditional permission from the US Department of Energy for a multibillion-dollar loan to fund a huge development project in Nevada.
The Canadian mineral exploration corporation revealed the $2.26 billion loan earlier this week, which will have a three-year term and an interest rate of approximately $290 million.
Interest is calculated by prevailing US Treasury rates.
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The Vancouver-based company intends to use the funds to develop its Thacker Pass project in Humboldt County, Nevada. The site is located around 200 miles northeast of Reno.
“The United States has an incredible opportunity to lead the next chapter of global electrification in a way that both strengthens our battery supply chains and ensures that the economic benefits are directed toward American workers, companies, and communities,” Lithium Americas President and CEO Jonathan Evans stated on the company’s website.
“The ATVM Loan Conditional Commitment announced today by the DOE is a significant milestone for Thacker Pass, which will help meet the growing domestic need for lithium chemicals and strengthen our nation’s security.”
Once fully operational, the factory is planned to generate 40,000 metric tons of battery-grade lithium carbonate annually. The inorganic chemical will mainly be employed in electric automobiles.
The British Columbia mineral explorer intends to reach full capacity by 2027 and may potentially enhance output by 80,000 metric tons per year as the demand for electric vehicles expands.
General Motors owns an equity share in the project, having invested $650 million earlier last year.
General Motors’ equity participation is also helping to fund the project. The automaker announced a $650 million investment in early 2023, which included a supply deal.
“Thacker Pass is a treasure trove of lithium — the key to strengthening U.S. energy security and electrifying America,” Energy Secretary Jennifer Granholm said in a statement on X.
“By presenting this $2.26B conditional loan, we’ll help level the global playing field and supercharge clean energy manufacturing nationwide.”
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