Thacker Pass is considered crucial in reducing U.S. reliance on China for lithium, a critical material used to produce the high tech batteries used in cell phones, electric vehicles and renewable energy. Both Republicans and Democrats support the project and narrowing the production gap. China is the world’s largest lithium processor.
U.S. Energy Secretary Chris Wright said in a statement that the deal with Lithium Americas “helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars.”
Thacker Pass is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year in its first phase, enough to help power 800,000 EVs.
Lithium Americas said Wednesday that it reached a non-binding agreement in principle with the DOE to advance the first draw of $435 million on the federal loan. The DOE has agreed to defer $182 million of debt service over the first five years of the loan.
Dan Ives, an analyst with Wedbush, called Thacker Pass is a “massive opportunity” for the U.S. to reduce its reliance on China and other foreign adversaries for lithium.
“Despite having some of the largest deposits, the U.S. produced less than 1% of the global lithium supply but this deal helps reduce dependence on foreign adversaries for critical minerals strengthening domestic supply chains and ensuring better stewardship of American taxpayer dollars with lithium production set to grow exponentially over the coming years,” he wrote.
Shares of Lithium Americas spiked more than 30% Wednesday.
