Oct 28 (Reuters) - The U.S. Department of Energy

finalized a $2.26 billion loan for Lithium Americas ( LAC ) on

Monday to build Nevada's Thacker Pass lithium mine, one of

Washington's largest mining industry investments and part of a

broader push to boost critical minerals production.

The loan, provisionally approved in March, is a key part of

U.S. President Joe Biden's efforts to reduce dependence on

lithium supplies from China, the world's largest processor of

the electric vehicle battery metal. Biden officials permitted a

similar lithium project under development by ioneer

last week.

The Thacker Pass project is slated to open later this decade

and be a key supplier to General Motors ( GM ), which earlier

this month boosted its investment in the mine to nearly $1

billion.

"The Biden-Harris Administration recognizes mineral security

is essential to winning the global clean energy race," said Ali

Zaidi, the White House national climate advisor.

Former President Donald Trump had permitted the mine just

before leaving office. Initial construction at the site, just

south of Nevada's border with Oregon, started last year after

the company won a long-running and complex court case brought by

conservationists, ranchers and Indigenous communities.

With the loan now closed, Vancouver-based Lithium Americas ( LAC )

plans to start major construction, a process that could take

three years or longer. The mine's first phase is expected to

produce 40,000 metric tons of battery-quality lithium carbonate

per year, enough for up to 800,000 EVs.

The project is expected to employ about 1,800 people during

construction, and provide 360 full-time jobs once the mine is

operational. The loan will have a 24-year term, with interest

rates based on the U.S. Treasury rate as each tranche is drawn.

"This essential loan helps us reduce dependence on foreign

suppliers and secure America's energy future," said Lithium

Americas ( LAC ) CEO Jon Evans.

The mine's cost had been increased from a previous estimate

of $2.27 billion to nearly $2.93 billion due to higher

engineering costs, an agreement to use union labor, and the

company's decision to build a housing facility for workers and

their families in the remote region.