Biden administration considering price support to backstop critical minerals projects
The new policy would involve setting a price floor for certain projects, according to POLITICO.
Lithium Americas said on Friday automaker General Motors has delayed the second tranche of investment, worth $330 million, in the miner until the end of the year.
GM had announced an investment of $650 million, in two tranches, in Lithium Americas last year to help it develop the Thacker Pass lithium mining project in Nevada, which holds enough of the battery metal to build 1 million electric vehicles annually.
The lithium miner said it is exploring alternative structures for the investment and extended the date for deal closure to Dec. 20. In case, the deal is not closed on their end by that date, Lithium Americas will have to grant additional rights to the automaker.
GM did not immediately respond to a Reuters request for comment.
The investment conditions for the second tranche included the successful execution of a $2.26 billion loan agreement with the US Energy Department, which the company is rushing to finish by the end of the year amid uncertainties regarding the results of the US presidential election.
Given Donald Trump’s pledge to “end the electric vehicle mandate” and plans laid out by former Trump administration officials in the Project 2025 document to shutter the Loans Program Office, mining companies and others are rushing to close loan agreements before Joe Biden leaves office in five months.
(By Sourasis Bose; Editing by Krishna Chandra Eluri)
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