DOE Grants $2.26 Billion Loan to Lithium Americas Corp

As part of the Biden-Harris Administration's Investing in America initiative, the U.S. Department of Energy (DOE), through its Loan Programs Office (LPO), has finalized a $2.26 billion loan for Lithium Americas Corp’s subsidiary, Lithium Nevada Corp., to support the construction of a lithium processing facility at Thacker Pass in Nevada. This project, situated next to the largest confirmed lithium resource in North America, will produce approximately 40,000 tonnes of battery-grade lithium carbonate annually once operational. This output will contribute significantly to the clean energy economy, as lithium carbonate is essential for electric vehicle (EV) batteries. The Thacker Pass facility will create around 1,800 construction jobs and 360 permanent operations jobs, boosting the regional economy and enhancing the domestic supply chain for critical minerals.

The Biden-Harris Administration sees the Thacker Pass project as a significant step in securing U.S. self-reliance in critical mineral resources, reducing dependency on countries like China. This effort aligns with broader goals to advance the domestic production of EV components and support the Administration’s vision that 50% of all cars sold by 2030 are zero-emission vehicles. General Motors, a primary expected buyer of the lithium carbonate produced at Thacker Pass, is aiding the project’s development. Lithium from Thacker Pass could enable battery production for up to 800,000 EVs per year, potentially offsetting the need for 317 million gallons of gasoline annually.

The DOE loan is provided through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, aimed at advancing U.S. production of technologies and materials that support fuel economy and emissions reduction. Since 2022, the ATVM program has backed multiple projects to strengthen the supply chain for EV components. The DOE's LPO has received 211 project applications, totaling over $303.5 billion in requested loans and guarantees.

As a part of this investment, Lithium Nevada Corp. has committed to a comprehensive Community Benefits Plan (CBP), ensuring meaningful engagement with local Indian Tribes, community groups, and labor organizations to create well-paying jobs and enhance local well-being. Construction of the Thacker Pass facility will involve union labor under a National Construction Agreement with North America’s Building Trades Unions (NABTU), which aims to secure a skilled workforce, address the challenges of its remote location, and support the hiring of Native Americans and individuals from underrepresented communities.

This project not only supports the Biden-Harris Administration’s climate goals but also aligns with the Inflation Reduction Act’s “Made in America” criteria, making the lithium produced at Thacker Pass particularly valuable for U.S. automakers. By building a reliable domestic supply of critical minerals like lithium, the U.S. can reduce reliance on foreign sources, thus strengthening its manufacturing competitiveness and supporting a transition to cleaner energy across the nation. For more details on the Thacker Pass project, visit LPO’s project portfolio page and the DOE's blog on conditional commitments.