General Motors postponed its investment in Lithium Americas’ Thacker Pass lithium mining project in Canada. This delay stems from concerns that former US president Donald Trump’s re-election could block funding for lithium production expansion.
On Friday, Lithium Americas announced that GM had postponed its second investment worth $330 million in the Thacker Pass lithium mining project in Nevada until the end of the year.
Lithium Americas explained that they are currently exploring alternative structures for the investment and extended the deadline to December 20. If the deal does not close by that date, they would have to grant GM additional rights.
GM announced last January that it would invest $650 million in Lithium Americas in two phases, acquiring a 10% stake to develop the Thacker Pass lithium mining project. Lithium Americas will supply GM with initial production volumes, allowing GM lithium to produce one million electric vehicles annually.
The Thacker Pass project in Humboldt County, Nevada, involves mining a significant lithium deposit. The project’s estimated cost has risen from $1.06 billion to $2.27 billion. Lithium Americas plans to achieve an annual production of 40,000 tons by the second half of 2026, with a potential maximum output of 80,000 tons. The mine is expected to operate for at least 40 years.
Lithium Americas has been discussing large-scale funding for the Thacker Pass project with the US Department of Energy (DOE). In February, they received an approval letter regarding funding from the DOE. If the loan is finalized, Lithium Americas will secure the largest funding in its history.
However, the possibility of Trump’s re-election has introduced uncertainty. Trump’s campaign has promised to repeal electric vehicle mandates and shut down the DOE’s Loan Programs Office (LPO) as part of “Project 2025.” This has led to concerns that he might obstruct funding for domestic production of essential minerals needed for energy transition projects. As a result, Lithium Americas is rushing to finalize its loan agreement with the DOE before the end of Biden’s term. Similarly, other companies, including mining firms, are also expediting their loan agreements to secure funding before potential changes in administration.
Under President Biden, the DOE committed $25 billion in loans to 21 companies, including Lithium Americas, to support the construction of facilities for recycling lithium from batteries, such as those used in electric vehicles. However, many companies have yet to complete final administrative procedures for these loans. Given the detailed assessments required, it is anticipated that most of these loan decisions may be deferred to the next administration.
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