US subsidies will support the growth of the top 3 lithium producer if the Livent and Allkem merger creating the new company goes ahead.

The company called its discovery one of the largest rare earth elements deposits in the US.

Rules for battery components should apply from 2024, while critical minerals will be covered from 2025.

The project has an annual production capacity of 1.5 million pounds of yellowcake.

The company faces charges for allegedly bribing officials in Angola and has also revealed a US probe into "improper payments" in Brazil.

The proposed mine, if built, would become one of North America's largest sources of lithium for electric vehicle batteries.

The revelation is the latest twist in a case that has shocked the commodity trading world.

The Biden administration has unveiled plans to exclude Chinese entities from receiving any of the generous tax credits available for investing in the US EV supply chain.