U.S. Boosts Domestic Lithium Production with $2.26B Loan for Thacker Pass Project
The U.S. is bolstering its domestic lithium production to reduce dependence on foreign supplies, particularly from China. The Trump administration is driving this initiative, with a focus on national security and the energy transition. The latest move involves a $2.26 billion loan for Lithium Nevada Corp., part of Lithium Americas, to discover the Thacker Pass lithium project in Nevada.
Thacker Pass is a significant project, aiming to produce 40,000 tonnes of battery-grade lithium carbonate annually. This output could power up to 800,000 electric vehicles (EVs) each year. The project is expected to create 1,800 jobs during construction and 360 permanent positions once operational, providing new opportunities for rural Nevada communities.
The U.S. Department of Energy's Loan Programs Office (LPO) approved the loan in October 2024. The move is part of a larger trend of Trump officials pursuing stakes in key tech firms, including Intel and MP Materials. The administration is demanding stronger safeguards, such as equity warrants and project oversight, due to concerns about lithium price slumps and loan repayment.
GM has invested $625 million in Thacker Pass, securing a 38% stake and long-term supply rights. This makes the project crucial to GM's EV strategy. The Trump administration is aiming to secure a 10% stake in Lithium Americas (NYSE: LAC) as part of negotiations to revise the loan. This move reflects Washington's increasing readiness to take charge of key mineral projects to protect national security and lessen dependence on China.
The U.S. currently produces less than 1% of global lithium supply, leaving it heavily exposed to foreign supply chains. The Thacker Pass project, backed by the Trump administration, is a significant step towards securing domestic lithium production. This project is expected to create jobs, power EVs, and enhance national security by reducing reliance on foreign lithium supplies.
Read also:
- Reporter of Silenced Torment or Individual Recording Suppressed Agony
- Solar panel troubles on rooftops
- EPA Administrator Zeldin travels to Iowa, reveals fresh EPA DEF guidelines, attends State Fair, commemorates One Big Beautiful Bill
- Musk announces intention to sue Apple for overlooking X and Grok in the top app listings
