Nevada lithium mine gets $2.26B Department of Energy loan

The developer of a lithium mine in Nevada’s Humboldt County has received a $2.26 billion loan from the U.S. Department of Energy to help finance the mine’s construction.

Through the Biden-Harris Administration’s Investing in America agenda and the DOE’s Loan Programs Office, the closure of the loan marks the next step towards financing Lithium Americas’ Thacker Pass mine and increasing the United States’ stock of lithium batteries for electric vehicles.

“This essential loan helps us reduce dependence on foreign suppliers and secure America’s energy future,” Jonathan Evans, president and CEO of Lithium Americas, said in a statement.

The project was approved by the Bureau of Land Management in 2021 and is set to be one of the largest lithium mines in North America, covering 18,000 acres. The site started the first phase of construction in 2023 and plans to be fully operational by 2028 with a 40-year shelf life.

Located near the Nevada-Oregon border, tribes in the area have attempted to stave off the mine saying an 1865 massacre occurred about 25 miles from the Nevada-Oregon border. In 2023, a federal judge in Nevada ruled against the tribes.

The loan comes from the administration in an effort to “deliver” high-paying jobs to communities across the U.S., according to a news release from Lithium Americas. Thacker Pass mine is expected to create 1,800 construction jobs and 360 permanent, full-time operations jobs.

As borrowers, Lithium Americas will be required to develop a comprehensive Community Benefits Program to “meaningfully engage” with tribal, community and labor stakeholders to create jobs. Additionally, Thacker Pass will utilize union labor from North America’s Building Trades Unions to address the challenges in construction.

The loan will have interest rates fixed from the date of each monthly advance for the term of the loan at applicable U.S. Treasury rates. The DOE Loan amount includes funding of interest accrued during construction.

Offered through the Advanced Technology Vehicles Manufacturing Loan Program, which supports the manufacturing of advanced vehicles and their materials, the loan will support the Biden-Harris administration’s goal of half of all cars sold be EVs in 2023.

General Motors has already signed onto the project, pledging $625 million in cash and credit towards construction and will own a 38 percent stake in the project. According to Lithium Americas, $430 million is a direct cash payment, while the remainder will be held as a credit.

There are about 130 proposed lithium projects across the Western U.S., including 82 in Nevada and several within the McDermitt Caldera alone.

Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes on X.