NEW YORK: The Trump administration is re-evaluating a US$2.3bil loan approved by President Joe Biden for the development of a Nevada lithium deposit, according to sources.
The record-high loan to Lithium Americas Corp, finalised in 2024, would have provided most of the capital for the construction of a processing plant adjacent to the company’s Thacker Pass mine, on one of the country’s largest lithium deposits.
The Energy Department’s review of the financing comes after Greg Beard, a senior adviser in the Loan Programmes Office, warned that the project could fail to draw customers amid competition from cheaper Chinese lithium, the Washington Free Beacon reported.
The agency is now pushing General Motors Co, which holds a 38% interest in the mine, to sign a binding offtake agreement for the mine’s production, according to one person. — Bloomberg
