Cavan Images/iStock via Getty Images
Lithium Americas (NYSE:LAC) jumped 9% in after-hours trading on a report that the Biden administration is set to lend the company $2 billion for its lithium mine in Nevada.
The conditional loan commitment could come as soon as Thursday, according to a Bloomberg report on Wednesday, which cited a person familiar with the matter. The funding will come from the U.S. 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.
The funding is expected to be the largest-ever loan to a mining company from the DOE’s Loan Programs Office, according to the report.
The latest report comes after Bloomberg reported in late September that the DOE was is 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 U.S. to produce lithium for use in electric vehicle batteries, solar panels, and wind turbines.