Nevada’s lithium loop secures our supply chains by restoring good jobs

One of the most important lessons of the last decade is the importance of secure and resilient supply chains.

A positive example is the large investments in the US oil and gas sector at the turn of the 2000s and 2010s, which protected our country’s economy from serious shocks, such as Russia’s invasion of Ukraine and the war in the Middle East between Israel and Iranian proxy groups such as Hamas.

As a negative example, consider what happened during the Covid-19 pandemic, when fragile international supply chains collapsed, causing shortages of everything from computer chips to cars and toilet paper.

Fortunately, a growing number of U.S. business leaders have learned this lesson. After decades of offshoring, smart public policies are bringing more of their supply chains home again.

One of the best examples is happening right here in Nevada’s mining and manufacturing sectors. Called the “lithium loop”, it aims to position our country as a world leader in the extraction, processing, production and recycling of metals used in advanced battery technologies.

Nevada is home to the nation’s only operating lithium mine, which has been in operation since the late 1960s. However, rapidly growing demand for battery technologies, especially in the automotive sector and in the national power grid, is driving significant expansion of Nevada’s lithium mining sector.

This is extremely important because currently the world’s leading producers of lithium are Australia, Chile and China. If this trend is not reversed, the U.S. economy may be even more dependent on foreign lithium than it is already dependent on foreign oil.

This is where the “lithium loop” comes into play. Nevada is actively pursuing the development of every step of the battery supply chain.

A federally recognized technology center — led by the University of Nevada, Reno — has been established to expand the mining, processing, production and recycling of lithium and lithium-based battery products in the Silver State.

Under the leadership of the Nevada Tech Hub, local universities, state agencies, industry leaders and labor representatives will coordinate to train the workforce needed to make the lithium loop a reality.

Research efforts will be focused on a single, dedicated campus to accelerate breakthroughs in lithium battery technology and other key materials for electric vehicles and energy storage systems.

Regulations will be simplified to ensure the timely construction of mines, production plants and other infrastructure necessary for the lithium loop.

Nevada Tech Hub will also take steps to connect investors with innovative researchers and start-up companies and create strong governance structures to keep pace with changing staffing and business needs.

Some tangible examples of this work include Lithium Nevada Corp.’s Thacker Pass manufacturing facility. in northern Nevada. The $514 million chemical production project will convert lithium from a nearby mine into building blocks for lithium-ion batteries.

To kick-start the project, the Nevada state government created a sales, real estate and business tax incentive package worth approximately $8.5 million. This cleared the way for a federal loan of more than $2 billion to support the full construction and operation of the plant.

State estimates indicate that in the initial phase, over 2,800 jobs will be created in the construction industry, and after the plant is operational, 100 permanent jobs will be created.

Another example: the significant expansion of Lithion Battery Inc.’s business. in Nevada – I had the opportunity to tour their amazing facility with The Western Way and other elected officials.

Lithion already has an 80,000-square-foot facility in Henderson with about 150 employees. However, the company is on the verge of more than doubling its physical presence with a 125,000-square-foot expansion that should add about 100 employees.

The state has offered about $500,000 in tax credits for the expansion, and the governor’s Office of Economic Development estimates the investment should return about $3 million in tax revenue over 10 years.

These projects follow major investments by companies such as Tesla, which last year announced a $3.6 billion expansion of its Nevada operations to produce batteries and semi-trucks, and Redwood Materials, which plans to expand its battery recycling business in our state by $3.5 billion. .