(Kitco News) - Diversified supply chains are necessary, said Jigar Shah, director of the Loan Programs Office, U.S. Department of Energy.
On Tuesday, Shah spoke to Kitco Mining.
After the Biden administration passed the Inflation Reduction Act nearly two years ago, Shah's office has been behind notable mine financings, such as $102.1 million to Syrah Technologies LLC to process graphite, and $2.26 billion to Lithium Americas for Thacker Pass. The goal of the IRA is to invest in America's domestic energy production while spurring development in clean energy. As of June, the cumulative dollar amount from the loads office tops $215 billion.
In July, Shah's office announced a conditional commitment of up to $1.2 billion for a direct loan to ENTEK lithium separators. If finalized, the loan will substantially finance a new facility in Terre Haute, Indiana, to manufacture lithium-ion battery separators.
China has built a tremendous lead in a number of key sectors, such as renewable energy and electric vehicles. Shah made an analogy with the oil and gas sector. Diversified supply chains are key, he said.
"We want to make sure we have a diversified supply chain so that you're not subject to the whims of any one country withholding access, to those technologies," said Shah. "[We] do need to get China to recognize that it is not in their best interest to be promoting an unstable supply chain."
[CORRECTION: As of June, the cumulative dollar amount from the loads office tops $215 billion, no $285 that was originally written.]
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