In an effort to secure the future of Nevada’s burgeoning lithium industry, Republican Governor Joe Lombardo has championed the Thacker Pass lithium mine as a key asset for the state’s economic development, describing it as Nevada’s “economic salvation.” This comes amidst concerns about a crucial $2.3 billion federal loan for the project, which is reportedly under scrutiny by a high-ranking Department of Energy (DOE) official.
The pipeline for this loan was established under former President Joe Biden’s administration, and its potential withdrawal could require Lithium Americas, the project’s developer, to pursue alternative financing options. Located in Northern Nevada’s Humboldt County, near the Oregon border, Thacker Pass is poised to become the largest lithium mine in the world and a significant player in reducing America’s dependence on foreign lithium markets.
Amid these developments, Nevada’s sole Republican congressional representative, Rep. Mark Amodei, has taken steps to reaffirm his commitment to the project. Amodei held a discussion with Department of Energy Secretary Chris Wright, signaling his “unequivocal support” for the mine and the federal loan. While maintaining close contact with the DOE, details of future negotiations remain undisclosed.
While Governor Lombardo has refrained from commenting, he continues to advocate for the lithium industry’s potential to make Nevada “recession-proof.” His remarks at a recent Latin Chamber of Commerce event aligned with the state’s vision of establishing a “lithium loop,” aiming for a comprehensive lithium extraction and production industry within Nevada.
The state’s economy, traditionally focused on tourism, views this development as a strategic diversification opportunity. The creation of a secure North American lithium supply chain has become a bipartisan objective for Nevada leaders. Recently, Lombardo and Amodei penned a joint op-ed emphasizing the strategic importance of Thacker Pass.
The success of Thacker Pass is contingent not only on federal support but also on General Motors, the primary investor in the project. The DOE has reportedly proposed a requirement for General Motors to commit to purchasing a significant amount of lithium from the facility over the next two decades as a loan condition.
Should these financial and strategic hurdles be navigated successfully, Nevada stands to gain a transformative industry with global implications, potentially placing it at the forefront of domestic lithium production. This ambitious endeavor marks a forward-looking shift in Nevada’s economic landscape, promising significant contributions to America’s energy independence.