The Thacker Pass Mine project is at risk of losing a loan of about $2.3 billion, leaving the future of the project in jeopardy.
The loan is from the U.S. Department of Energy. It was approved at the end of the Biden Administration's term in October of last year.
The entire project is expected to cost about $3 billion, which the Trump Administration approved at the end of his first term.
Construction on the mine is expected to be finished in 2027, with production planned to start at the mine in 2028. At that time, it can start actually producing revenue.
The loan makes up a big piece of the pie.
Lithium Americas, which is spearheading the project, sent us a brief statement about the situation.
"We cannot comment on the details of ongoing discussions with the Department of Energy and General Motors regarding the first draw on our loan agreement. We remain in active discussions with the DOE and our partner, GM, and will provide an update at the appropriate time."
Sources close to the situation told 2 News Nevada there are a couple of reasons why they think the Energy Department is reconsidering its loan.
Sources claim the Trump Administration is looking to get an equity stake in Lithium Americas, and the DOE allegedly told people involved that they think the price of lithium is going down, causing concern for future revenue.
2 News Nevada also obtained a letter that Nevada Senator Catherine Cortez Masto sent to the department.
In it, she asked the DOE to reconsider pulling the loan for the sake of overtaking foreign competitors such as China and the potential waste of millions of dollars that have already been put into the project.
The Senator also sent us a statement saying, "The Department of Energy’s eleventh-hour attempt to alter the terms of Lithium Americas’ loan is yet another example of the Trump Administration’s shortsighted approach to national security. We need the Thacker Pass mine and its additional lithium processing capabilities in order to compete with Communist China’s critical mineral industry. Allowing this essential investment to fall through would play right into the CCP’s hands and deal a major blow to the Nevada economy."
On September 12, Nevada Governor Joe Lombardo and Congressman Mark Amodei released an op-ed in the Washington Examiner, sharing their support for the mine. Particularly for it being a driver in bringing more domestic production to the U.S.
On Monday, we learned Amodei has been in communication with Energy Secretary Chris Wright since Friday.
On Tuesday, a spokesperson with the Governor's Office sent us a statement saying, "The Governor spoke with senior officials in the White House today to express support for Lithium Americas' Thacker Pass project. He spoke on the importance of the project, inclusive of jobs and investment, and the additional potential for future development related to refining, manufacturing, and exporting lithium at both the state and national levels.”
