WASHINGTON (AP) — The Biden administration is moving to support a major lithium mining project in northern Nevada, the Thacker Pass lithium mine, partnered with Canadian company Lithium Americas, amidst rising tensions over its environmental impact and proximity to Indigenous sacred sites.
The Department of Energy has made adjustments to a $2.3 billion federal loan agreement, believed to ensure the project's initiation which will help extract lithium—a key component for electric vehicle batteries. Lithium Americas is reported to have secured a substantial investment from General Motors exceeding $900 million.
While the project is touted for its potential to enhance domestic lithium production—forecasted to yield enough lithium to produce 800,000 electric vehicles annually—critics argue it poses a threat to cultural and environmental integrity. The mine is close to historic sites recognized by local Indigenous tribes, who have voiced strong opposition to the project.
As part of the restructuring effort, the U.S. government is expected to acquire a minority stake in Lithium Americas, characterized as a “cash buffer” for the company by government officials who wish to keep taxpayer interests at heart. Detailed discussions between Lithium Americas, the Department of Energy, and GM continue regarding the terms of the loan, indicating that investment conditions remain in flux.
Environmental advocacy groups and tribal leaders have campaigned for years against the Thacker Pass project, arguing it threatens sacred lands historically associated with the massacre of over two dozen Native Americans in 1865. Yet, this undertaking has received bipartisan political backing, viewed by many in Washington as crucial for decreasing dependency on China's lithium processing.
In a broader context, this initiative reflects ongoing tensions between economic progress in cleaner energy, the needs of Indigenous peoples, and heightened scrutiny surrounding resource extraction and environmental stewardship. As the U.S. seeks to invigorate its electric vehicle market, the balance between development and cultural preservation remains precarious.