Loan of $2.2B to LAC from US DoE approved. Phase one to produce 40k metric tons of lithium carbonate per year. October price average of $10k/mt. That's $400m/year. LAC is backed by GM which will purchase 38% ownership at $625m.
Both are out in the middle of a desert and Biden last week approved Ioneer.
Ioneer received $700m loan from DoE. Mine to produce 22k metric tons per year. Backed by SBSW ($490m in equity); Ford, Toyota, and Panasonic have agreed to buy lithium from them.
LAC's mine is already under construction and will start producing sometime in 2026. Ioneer will begin construction in 2025 and won't produce until about 2028.
Neither political party will opposed due to there currently being one lithium mine in the US and the general mood of F China. Both mines have a life expectancy of at least 20 years upwards of 30 years.
Currently, lithium carbonate is in a slump due to China's oversupply of batteries and drop in EVs sales; falling from its high of $79,000 per metric ton in Dec 22, to October price of $10,000. Prices are expected to stabilize and increase to $15-17k in the next year.
But demand is expected to continue to rise far beyond current supplies. 2024 predicted to produce 1.3 million tons (with an over supply of 100k tons) and 2030 demand is expected to be 3 million tons. By 2040 demand is expected to at least double 2030 demand.
Even at current prices, mining lithium carbonate is still very profitable. Prices are expected to stabilize and increase slightly.
TL:DR
Pros: Demand is going to increase steadily for the next decade or more. Even at current prices mines are profitable. The West hates China and finance new mines. Almost all governments on Earth are pushing EVs.
Cons: China is attempting to dominate the market by ~stealing~ politely taking from Africa. African mines plus unregulated 3rd world country's mines could cause short term oversupply. Long, long term potential for recycling of lithium to cause drop in mining demands.
Bonus:
Copper demand is also expected to skyrocket as it is a main component in electronics and EV batteries.
https://www.reuters.com/markets/commodities/biden-administration-approves-ioneers-nevada-lithium-mine-2024-10-24/
https://carboncredits.com/the-lithium-paradox-price-plummet-supply-surge-and-demand-dip-whats-happening-now/
https://carboncredits.com/lithium-shortage-looms-meeting-the-surge-in-demand-by-2030/#:~:text=In%202021%2C%20the%20world%20consumed,heart%20of%20the%20electrification%20trend.