Lecture on US Battery Mineral Supply Projects

Key Locations

McDermitt Caldera (Nevada/Oregon Border)

• US's largest deposit of lithium.
• Thacker Pass project by General Motors.

Tamarack Project (Minnesota)

• One of the only US sources of high-grade nickel.
• Talon Metals exploring the deposit.

US Battery Supply Chain Challenges

• Current Dependence: Reliance on China, which produces 85% of the world’s batteries.
• Global Mining Statistics:
  • Australia: 48% of world’s lithium
  • Indonesia: 50% of world’s nickel

Legislation and Investments

• Inflation Reduction Act (2020):
  • Billions in subsidies to encourage domestic mining and production.
  • $7,500 tax credit for EVs with batteries containing domestically sourced minerals.

Company Investments

• General Motors: $650 million towards Thacker Pass for rights to lithium for up to 15 years.
• Tesla: Committed to purchasing 75,000 metric tons of Talon’s nickel.

Mining and Extraction Processes

• Lithium: Extracted using a unique process tested for years by Lithium Americas.
• Nickel: High-grade deposit with 17 million metric tons of nickel mineralization.

Economic and Market Challenges

• Slowed EV Sales Growth in the US.
• Price Drops: Nickel prices down 26%, Lithium down more than 80%.
• Economic viability of mining projects impacted by price declines.
• Permitting Delays: Takes up to 10 years to secure permits in the US, compared to only 3 years in other countries.

Opposition and Environmental Issues

• Projects face opposition from environmental groups and local Native American groups.
• Talon Metals moved planned nickel processing facility out of the state due to opposition.

Future Outlook

• Tamarack Project: Potential for growth and expansion.
• Thacker Pass: Fully permitted, production to begin in 2027.
• Need for more deposits to ensure a reliable domestic mineral supply.