The Biden administration and Lithium Americas Corp. are negotiating the terms of an agreement that would fund more than half of the cost of the Thacker Pass mine in Nevada, according to a person familiar with the matter who asked not to be identified discussing confidential information.
The outlay, which could exceed the $1 billion mark, would be the largest-ever loan awarded to a mining company through the Energy Department’s Loan Programs Office. The $2.2 billion project 500 miles northeast of San Francisco has been pegged as one of the country’s most promising opportunities to produce the metal used in electric-vehicle batteries, solar panels and wind turbines.
The Loan Programs Office previously provided $107 million to graphite supplier Syrah Resources Ltd. for an anode plant in Louisiana and $2 billion to Redwood Materials Inc. to expand a battery-materials manufacturer in Nevada.