PAT – Patriot Lithium
It’s an easy pathway, familiar to those behind the company. And there are benefits
Access to develop any mine and production through the US Loans Program Office under the Advanced Technology Vehicles Manufacturing Direct Loan Program. Loans Program Office financing is at the same rate as US Treasury bonds, or about 4 per cent.
Under Biden’s Inflation Reduction Act, approved developments will also be entitled to generous tax credits (benefits of the legislation can flow to ASX listed lithium miners.)
The IRA is designed to encourage the mining of the raw materials, and the processing of the ore into chemicals that can be used in batteries that are then used in the manufacture of electric vehicles made in the US, and includes a subsidy for EV purchases.
The IRA mandates two sourcing requirements to receive the clean vehicle credit system starting in 2023. These are: 40 per cent of battery minerals must be sourced from the US or a country with a free trade agreement with the US; and 50 per cent of battery components made in the US, Mexico or Canada.
Also, the IRA disqualifies vehicles from the generous concessions if they are imported or built with battery materials sourced from “foreign countries of concern”, which means China and Russia.
