The US Department of Energy ( DOE ) has closed a US$2.26 billion loan to Lithium Nevada Corp, a subsidiary of Lithium Americas Corp, to help finance the construction of facilities for processing lithium at Thacker Pass in Humboldt County, Nevada.

The secured loan, including US$1.97 billion in principal and US$289.7 million in capitalized interest, is being extended via DOE‘s Loan Programs Office ( LPO ). A&O Shearman represented LPO in the deal.

The project is located next to an open pit mine site that contains the largest confirmed lithium resource in North America, also being developed by Lithium Nevada.

Once fully operational, the facilities are expected to produce approximately 40,000 tonnes per year of battery-grade lithium carbonate, helping ensure the United States can meet anticipated skyrocketing demand for the critical minerals necessary for the clean energy future.

The Thacker Pass facilities will help the US establish a domestic supply chain for a critical component in making electric-vehicle batteries.

On October 16, an investment agreement was signed with General Motors, establishing a joint venture for the purpose of funding, developing, constructing and operating Thacker Pass. GM is expected to be a long-term primary lithium carbonate buyer for the project.

Lithium carbonate from Thacker Pass could support the production of batteries for up to 800,000 EVs annually, helping meet the goal of the outgoing administration of US President Joe Biden for half of all cars sold in the country by 2030 to be zero-emission vehicles.