U.S. Loan Doubts Rattle Lithium Americas' Big Project

Lithium Americas LAC slid 1.8% in post-market trade Monday after word spread that the U.S. Department of Energy is having second thoughts about a $2.3 billion loan for its Thacker Pass project in Nevada. The loan, greenlit under the Biden administration, was supposed to cover most of the cost of building a processing plant next to one of the country's largest lithium deposits.

The review casts fresh doubt over a project the U.S. has billed as key to breaking its reliance on Chinese supply chains for EV batteries. A senior DoE advisor had already waved a caution flag, warning that cheap Chinese lithium could make it tough for Thacker Pass to lock in customers, the Washington Free Beacon reported.

According to Bloomberg, the agency may now be leaning on General Motors GM, which paid $625 million for a 38% stake last year, to lock down a binding offtake deal to steady the project.

The pause shows how even strategic U.S. mining projects aren't immune to market realities and leaves LAC investors bracing for answers.