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Nevada’s lithium loop is securing our supply chains, bringing back good jobs

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Nevada’s lithium loop is securing our supply chains, bringing back good jobs

Stavros Anthony
 |  Reno Gazette Journal

One of the greatest lessons of the past decade is the importance of secure and resilient supply chains.

For a positive example, look at the major investments in the U.S. oil and gas sector during the late 2000s and early 2010s, which shielded our nation’s economy from major shocks like Russia’s invasion of Ukraine and war in the Middle East between Israel and Iranian proxy groups like Hamas.

For a negative example, consider what happened during the COVID-19 pandemic, when fragile international supply chains broke down, creating shortages of everything from computer chips to automobiles to toilet paper.

Thankfully, a growing number of U.S. business leaders have learned their lesson. After decades of offshoring, they are bringing more of their supply chains home again with the help of smart public policies.

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 state as a global leader in the mining, processing, manufacturing and recycling of the 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. But rapidly growing demand for battery technologies, especially in the automotive sector and on the nation’s power grid, is fueling a major expansion in Nevada’s lithium mining sector.

This is critically important because currently, the world’s leading producers of lithium are Australia, Chile and China. Unless this trend is reversed, the U.S. economy could be even more dependent on foreign lithium than we used to be dependent on foreign oil.

This is where the “lithium loop” comes in. Nevada is actively pursuing the development of every stage of the battery supply chain.

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

Under the leadership of the Nevada Tech Hub, community colleges, 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 centralized on a single, dedicated campus to accelerate breakthroughs in lithium battery technology and other crucial materials for electric vehicles and energy storage systems.

Regulations will be streamlined to ensure that the mines, manufacturing plants and other pieces of essential infrastructure for the lithium loop are built in a timely manner.

The Nevada Tech Hub will also take actions to connect investors with innovative researchers and startup companies, and put strong governance structures in place to keep up with changing workforce and business needs.

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

Nevada’s state government created a package of sales, property and business tax incentives worth around $8.5 million to get the project started. This paved the way for a federal loan of more than $2 billion to support the full construction and operation of the plant.

State estimates show more than 2,800 construction jobs will be created during the initial phase, followed by 100 permanent positions when the plant enters operation.

Another example: The major expansion of Lithion Battery Inc.’s operations in Nevada — I had the opportunity to tour their incredible facility with The Western Way and other elected officials.

Lithion already has an 80,000-square-foot facility in Henderson which employs around 150 workers. But 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 workers to its payroll.

The state offered tax abatements worth around $500,000 to help with the expansion, and over 10 years, that investment should return around $3 million in tax revenues, according to estimates from the Governor’s Office of Economic Development.

These projects follow major investments from companies like Tesla, which last year announced a $3.6 billion expansion of its Nevada operations for battery manufacturing and semi-truck manufacturing, and Redwood Materials, which is pursuing a $3.5 billion expansion of its battery recycling operations in our state.

For many years, leaders in the public and private sectors have talked about bringing manufacturing investment and jobs back to America. Here in Nevada, it isn’t just talk — we are actually making it happen.

Stavros Anthony is Nevada’s lieutenant governor.

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