US re-evaluating $2.3bn loan for Nevada lithium mine
The Trump administration is re-evaluating a $2.3-billion loan approved by President Joe Biden for the development of a Nevada lithium deposit, according to people familiar with the matter who asked not to be named discussing internal business.
The record-high loan to Lithium Americas Corp, finalised in 2024, would have provided most of the capital for the construction of a processing plant adjacent to the company’s Thacker Pass mine, on one of country’s largest lithium deposits.
The Energy Department’s review of the financing comes after Greg Beard, a senior advisor in the Loan Programs Office, warned that the project could fail to draw customers amid competition from cheaper Chinese lithium, the Washington Free Beacon reported.
The agency is now pushing General Motors — which holds a 38% interest in the mine — to sign a binding offtake agreement for the mine’s production, according to one person. GM last December acquired a stake in the project for $625-million in total cash and letters of credit.
In a statement, the agency said it is working “to ensure our limited taxpayer resources are used to advance best interests of the American people and generate a return on investment.”
The Energy Department loan is a necessary piece of the project’s financing, GM said in a statement.
“During his first term President Trump strongly supported the development of Nevada’s Thacker Pass mine,” said a GM spokesperson. “We’re confident in the project, which supports the administration’s goals, and have committed almost $1-billion to its development, including a nearly $200-million letter of credit.”
Lithium America’s head of government affairs, Tim Crowley, said the company continues to “work closely with the DOE and our partner GM toward first draw on the DOE loan and will provide an update at the appropriate time.”
The re-evaluation comes amid a broader Energy Department review of financing made through the agency’s $400billion green bank.
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