Battery grade lithium in America just got a big boost from a new backer: the United States Department of Energy.
What’s happening:
- The United States Department of Energy has committed to loaning Lithium Americas (NYSE: LAC) $2.26B USD to finance the construction of new lithium production facilities in Nevada
- This is the largest loan ever granted by the Department of Energy to a single mining company
By the numbers:
- General Motors has invested $650M USD into Lithium Americas since the inception of the company and has an exclusive offtake agreement for all the lithium produced by Lithium Americas for 15 years
- Lithium Americas Thucker Pass mine in Nevada aims to produce 40,000 tons of battery grade lithium carbonate per year
Going deeper:
- The United States Department of Energy has been putting an increased effort into funding domestic sources of lithium production to power the transition to electric vehicles and reduce their dependence on foreign countries for battery grade lithium
- Once fully constructed and operational, the Lithium Americas Thucker Pass mine could become the single largest source of lithium production in all of North America
