This past U.S. government announced its minority investment in Lithium Americas (formerly AML Lithium). This Canadian-based firm is developing what will soon be one of the world’s largest lithium mines, located in Nevada. The investment, a total of US$35.6 million, was announced last week and is projected to strengthen the nation’s critical mineral supply.
This bold initiative is a direct answer to the lithium market’s exponential growth potential. Its recent prominence in electric vehicle batteries and renewable energy technologies is driving this current boom. The U.S. government has taken a 10-percent equity stake in Lithium Americas. It is indeed a big jump, and it shows the Department’s seriousness in fostering domestic sources of essential minerals.
U.S. Secretary of the Interior Doug Burgum pulled no punches in emphasizing the significance of this investment. He continued that it would help ensure access to critical mineral resources. Further, he stressed the positive impact that this collaboration could have. He reiterated that winning these resources is key to delivering for the American people.
“They’re (Trilogy Metals) one of the companies that has mining claims in this area that is a remote wilderness right now, and again making that investment so we can make sure that we’re securing these critical mineral supplies and that ownership in that company will benefit the American people.” – Doug Burgum
To overcome these challenges, the U.S. government is making a strategic investment in Lithium Americas. It has announced a 10-percent equity stake in Trilogy Metals Inc., which is developing mines in Alaska’s Ambler mining district, an area famous for its rich copper deposits. The Ambler Road project, first approved in the Trump administration, would provide access to this mining district. As it came to the fore under the Biden administration, it began to see opposition on the basis of its environmental harm.
The Biden administration blocked the Ambler Road project after an analysis indicated it would pose a threat to local caribou populations and other wildlife. Additionally, it sounded the alarm for Indigenous communities who depend on hunting and fishing in those waters to know that their health and well-being would be threatened.
President Donald Trump signed an executive order to start the construction of this road. This action serves to further underscore the administration’s focus on resource extraction at all costs in Alaska.
Tony Giardini, CEO of Trilogy Metals, sounded positive notes about the collaboration with the U.S. government. He pointed out that this partnership is a significant coup for Trilogy Metals. Just as important, it plays an outsized role in supporting the domestic supply chain of critical minerals as a whole.
“This proposed partnership with the U.S. Government represents a significant milestone for Trilogy Metals and for the development of a secure, domestic supply of critical minerals for America in Alaska.” – Tony Giardini
