Mining project support from U.S. Department of Energy’s Loans Program Office

May. 17, 2024

$72B

In an April update from the U.S. Department of Energy’s (“DOE”) Loan Programs Office (“LPO”), domestic mining projects of critical minerals (such as lithium) are now eligible for loans through the $72B, Title 17 Clean Energy Financing Program.

Previously announced loans or loan guarantees issued from DOE’s LPO into the lithium mining sector, such as Lithium America’s Thacker Pass or Ioneer’s Rhyolite Ridge project, were issued under the $55B Advanced Technology Vehicles Manufacturing (“ATVM”) Loan Program.

Mining project support from U.S. Department of Energy’s Loans Program Office

Adamas take:

The update provides much needed debt funding support for the capital strained mining sector, particularly when considering the exceptionally high capital intensities of lithium projects in the U.S. which often require application of emerging technologies, such as direct lithium extraction.

However, it is questionable how much funding will be directed into the lithium mining sector as a result of the update.

Although the Title 17 program offers access to a larger pool of funds, it has a much more diverse mandate across the clean energy landscape when compared to the targeted, auto-focused ATVM program.

Previous ATVM loans into the sector have taken up to 2 years, therefore it is unlikely we will see the effect of this news until 2026.

[Extract from the May issue of the EV Battery Lithium Monthly service.]

 


 

Chris Williams, Analyst at Adamas Intelligence

Chris is an Analyst at Adamas Intelligence focused on the global lithium industry. He researches and analyzes the lithium value chain to uncover actionable opportunities for clients.

Chris has 11-years experience in mining and oil & gas operations optimization, delivering value from data intensive insight generation. He completed his Bachelor and Masters of Engineering at the University of Queensland, majoring in Mechanical Engineering, and is currently completing a Masters of Business Administration at the University of British Columbia.

 


 

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