In a significant development for the electric vehicle (EV) industry, Lithium Nevada has received approval for a $2.26 billion loan from the US Department of Energy. The loan will finance the construction of a lithium carbonate processing plant, making it North America’s largest source of lithium for EV batteries.
The Thacker Pass mine and processing plant, located in Humboldt County, will play a crucial role in meeting the increasing demand for lithium-ion batteries in EVs. Once operational, the processing plant is expected to produce approximately 40,000 tonnes of lithium carbonate annually, enough for up to 800,000 EVs. The project aims to eventually double its production to 80,000 metric tons per year.
Construction at the Thacker Pass mine site began in March 2023, following a legal victory for Lithium Nevada against ranchers, conservationists, and Indigenous communities. Once the loan is finalized, a three-year construction process will commence.
The loan, if completed, will be provided through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, supporting the growth of domestic EV battery supply chains and reducing reliance on foreign sources.
The project is expected to create approximately 1,800 jobs during construction and 360 jobs in operations. General Motors is poised to be a key long-term buyer of lithium carbonate from the project, having invested $650 million in Thacker Pass in 2023, becoming the largest shareholder in Lithium Nevada’s parent company, Lithium Americas.
The DOE’s Loan Programs Office highlighted the importance of the Thacker Pass project, stating that it “will strengthen domestic battery supply chains and reduce reliance on unreliable foreign sources.”
The Thacker Pass mine and processing plant are projected to be fully operational by 2028, marking a significant milestone in the development of sustainable EV battery solutions.