DOE to Provide Conditional $2.26B Loan for Lithium Project in Nevada
WASHINGTON — The Department of Energy is extending a conditional $2.26 billion loan to Lithium Americas Corp. to support its effort to build a lithium carbonate processing plant in Nevada.
Once operational, the plant, which will be located in Thacker Pass, about 200 miles northeast of Reno, Nevada, is expected to produce enough battery-grade lithium to support the production of 800,000 electric vehicles a year.
According to the Energy Department, that level of production would be equivalent to eliminating the consumption of 317 million gallons of gasoline a year.
The project is also being supported through a $650 million equity investment from General Motors, which will use lithium-ion batteries made from the plant’s output in its electric vehicles.
As a result of its support for the project, GM has exclusive offtake to 100% of the lithium production from phase one for up to 15 years and has a right of first offer on phase two production.
But that’s not to suggest everything has been smooth sailing for the planned facility. The project has been beset by multiple lawsuits filed by environmentalists and Native American tribes. To date, all of those lawsuits have been unsuccessful and construction is currently slated to begin in the second half of the year.
On the other hand, the Biden-Harris administration has looked favorably at the project, seeing it very much in line with the president’s desire to expand the domestic supply chain for critical minerals.
The Energy Department is also said to be excited to support the creation of some 1,800 construction jobs and 360 permanent jobs that come with the project.
“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,” said Jonathan Evans, president and CEO of Lithium Americas, in a written statement.
“The conditional loan commitment announced 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,” Evans said.
The construction period is currently expected to last about three years. The life of the lithium mine at Thacker Pass, the largest known deposit of the critical material in the United States, is projected to be about 40 years.
In a press release, Lithium Americas, which is based in Vancouver, British Columbia, Canada, said the $2.26 billion 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 loan amount includes interest accrued during construction, which is estimated to be $290 million over the three-year period.
In the same release, Lithium Americas said it is committed to sustainable development and minimizing its environmental impact.
Toward that end, the project has been designed to avoid sensitive habitats and will employ advanced environmental control technologies to be a low-carbon and low-water footprint operation.
Leveraging filtration, evaporation and centrifuge technologies will help maximize the reuse and recycling of processed water and limit the amount of water obtained from natural sources, as well as enable Thacker Pass to be a zero liquid-discharge facility that does not discharge industrial wastewater into the environment, the company said.
Phased reclamation will begin during operations and filter stacked neutralized tailings will support reclamation plans to promote stability and restore native vegetation, it added.
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