MINERALSU.S. to Tap Domestic Lithium Supply Without Chinese Products
Earlier this month, the U.S. Department of Energy announced a record conditional loan of $2.26 billion to tap the largest known lithium reserves in North America. The loan is an important step in an effort by the U.S. government to reduce reliance on China for the metal used to make batteries.
Earlier this month, the U.S. Department of Energy announced a record conditional loan of $2.26 billion to tap the largest known lithium reserves in North America. The loan is an important step in an effort by the U.S. government to reduce reliance on China for the metal used to make batteries.
Analysts, however, say that it may be too late to move away from reliance on China completely when it comes to metal processing and the production of batteries.
The DOE’s Loan Programs Office (LPO) says the funds, if approved after review, will help the Lithium Americas Corp. construct a lithium carbonate processing plant at the Thacker Pass mine project in Humboldt County, Nevada.
The LPO says the project would help “secure reliable, sustainable domestic supply chains for critical materials, which are key to reaching our ambitious clean energy and climate goals and reducing our reliance on economic competitors like China.”
Lithium Americas Corp. on its official website says battery materials could be “completely sourced and manufactured in the U.S., bringing down the overall carbon footprint, transport costs and supply chain risks.”
The LPO says lithium carbonate from Thacker Pass could eventually support the production of batteries “for up to 800,000 electric vehicles (EVs) per year, saving 317 million gallons of gasoline per year.”
Although the U.S. has made pioneering and groundbreaking contributions to the development of the lithium ion battery, industry experts say lithium processing and EV battery production is dominated today by China.
“Parts of our key supply chains, including for clean energy, are currently over concentrated in China,” said U.S. Treasury Secretary Janet Yellen in prepared remarks March 2 when she visited a U.S. lithium processing facility in Chile, which holds the world’s largest reserves of the metal.
“This makes America more vulnerable to shocks in China, or whatever country dominates production, from natural disasters to macroeconomic forces, to deliberate actions such as economic coercion.”
A report last year by the Organization for Economic Co-operation and Development said China increased restrictions on its exports of critical minerals ninefold between 2009 and 2020.
Data from the U.S. Geological Survey shows the output and scale of lithium mines in Australia and Argentina far exceed China’s. In 2022, Australia’s lithium mine output was more than three times China’s.
