Rising demand for batteries to power electric vehicles (EV) and renewable energy systems has given a major boost to the lithium industry, which not too long ago operated in what Bloomberg dubbed a “niche and tiny market.” Because lithium is a common component in EV batteries, government agencies and private companies have stepped up efforts to produce the metal. One of those agencies is the United States Department of Energy (DOE), which is pouring billions of dollars into the initiative.
In March, the DOE announced a conditional commitment to Lithium Nevada, a subsidiary of Lithium Americas Corp., for a $2.26 billion loan to help finance the construction of a lithium carbonate processing plant at Thacker Pass in Humboldt County, Nevada. According to a March 14 news release from the DOE, the project is located next to a mine site that contains the largest proven lithium reserves in North America.
If finalized, the loan would be offered through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which provides financing to support the U.S. production of advanced technology vehicles, qualifying components, and other materials that improve fuel economy.
In a press release accompanying the DOE announcement, Lithium Americas said Thacker Pass is the “largest known Measured and Indicated lithium resource in North America.”
It targets a total production capacity of 80,000 metric tonnes per year of battery-quality lithium carbonate to be developed in two phases. Material sourced from Thacker Pass will support EV eligibility for consumer incentives under the U.S. Clean Energy tax credits program.
Photo Courtesy Lithium Americas
Phase 1 production is expected to begin in 2027. Once it gets up and running, the facility is expected to produce about 40,000 metric tonnes per year of lithium carbonate for use in lithium-ion batteries. The project is partly supported by an equity investment from General Motors (GM), which is expected to be a long-term primary lithium carbonate buyer.
“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,” Jonathan Evans, Lithium Americas president and CEO, said in a statement.
He called the DOE loan a “significant milestone for Thacker Pass” and one that will assist in meeting the growing domestic need for lithium.
Photo Courtesy Lithium Americas
“The loan plus GM’s strategic investment will provide the vast majority of the capital necessary to fund Phase 1,” Evans added.
In January 2023, GM agreed to invest $650 million in Lithium Americas for the development of Thacker Pass.
According to the company, that dollar figure represented the “largest investment publicly disclosed to date by an automaker in a company to produce battery raw materials.” GM has exclusive rights to all lithium production from Phase 1 for up to 15 years and has a right of first offer on Phase 2 production.
Photo Courtesy Lithium Americas
Thacker Pass Phase 1 is expected to create around 1,800 direct jobs during its three-year construction stage and approximately 360 jobs in operations for its 40-year mine life. According to an analysis from the University of Nevada, Reno, every direct job created by Lithium Americas’ construction investment will generate an additional 1.5 local jobs during construction.
The Thacker Pass loan is part of a broader federal government effort to invest in lithium production across the U.S. As previously reported by The Business Download, Charlotte, North Carolina-based Albemarle Corporation got a $90 million grant from the U.S. Department of Defense last year to help support the expansion of domestic mining and lithium production for the nation’s battery supply chain.
Albemarle, the world’s largest lithium producer, will use part of the money to reopen a long-dormant mine in Kings Mountain, about 30 miles west of Charlotte.
