Lithium is a crucial component for batteries, especially in electric vehicles (EVs). The global EV industry requires lithium, which is usually carried over long distances from extraction to battery cell production. The U.S. doesn’t play a significant role in this. The country currently produces less than 1% of the global lithium supply.
Amidst this, Washington is set to buy an equity stake in Lithium Americas (LAC), a lithium mining company. The stake will be worth 5% of the company and will draw upon the previously issued $2.26 billion loan from the U.S. Department of Energy (DOE) under the Advanced Technology Vehicles Manufacturing Loan Program, which financed the construction of the processing facilities at Thacker Pass. The government will be taking a 5% stake in Thacker Pass as well.
