The US Government is reassessing a $2.3bn loan sanctioned under the Biden administration to support the development of Lithium Americas’ Thacker pass lithium project in Nevada, reported Bloomberg, citing sources.
The financing, finalised in 2024, was intended to fund the construction of a processing facility next to one of the country’s largest lithium deposits.
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Concerns have arisen about potential competition from cheaper Chinese lithium.
The Department of Energy’s (DoE) review follows a warning from Greg Beard, a senior advisor in the Loan Programs Office, about the venture’s struggle to secure customers.
The department is reportedly pressing General Motors (GM), which holds a 38% stake in Thacker Pass, to enter into a binding offtake agreement for the mine’s production.
Last December, GM purchased a stake in the lithium project for $625m in cash and letters of credit.
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By GlobalDataA spokesperson from GM was quoted as saying: “During his first term President Trump strongly supported the development of Nevada’s Thacker Pass mine.
“We are confident in the project, which supports the administration’s goals, and have committed almost $1bn to its development, including a nearly $200m letter of credit,” added the spokesperson.
Lithium America head of government affairs Tim Crowley said the company will continue 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 reassessment forms part of a wider review of the DoE’s $400bn green financing programme.
Last week, Bloomberg reported that the US Government is negotiating with Orion Resource Partners to establish a multibillion-dollar fund for overseas mining projects.
