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Lithium Americas (NYSE: LAC) jumped by 9% in after-hours trading based on a report that the Biden administration is prepared to lend the company $2 billion for its lithium mine in Nevada.
According to a Bloomberg report, the conditional loan commitment could come as early as Thursday Wednesday, citing a person familiar with the matter. The funding will come from the US Department of Energy and will help finance the construction of a lithium carbonate processing plant.
The project is expected to be adjacent to Lithium Americas’ (LAC) $2.2 billion Thacker Pass mine.
According to the report, the financing is expected to be the largest loan ever awarded to a mining company by the DOE’s Office of Lending Programs.
The latest report comes after Bloomberg reported in late September that the DOE was in talks to lend a record $1 billion to Lithium Americas (LAC). The $2.2 billion project is considered one of the most promising opportunities in the United States to produce lithium for use in electric vehicle batteries, solar panels and wind turbines.