RENO, Nev. (AP) — President Joe Biden's administration has conditionally agreed to loan more than $2 billion to the company building a controversial lithium mine in Nevada with the largest known U.S. deposit of the metal critical to making batteries for electric vehicles key to his renewable energy agenda.

The U.S Energy Department agreed on Thursday to provide the $2.26 billion conditional loan to Canada-based Lithium Americas to help cover costs at its open pit mine deeper than the length of a football field near the Oregon line.

The loan would help finance the a lithium carbonate processing plant at the Thacker Pass mine about 200 miles (322 kilometers) north of Reno — "the largest-proven lithium reserves in North America,” DOE said in a statement.

“Thacker Pass is a treasure trove of lithium — key to strengthening U.S. energy security and electrifying America,” Energy Secretary Jennifer Granholm said in a message posted Friday on X, formerly known as Twitter.

“By presenting this $2.26B conditional loan, we’ll help level the global playing field and supercharge clean energy manufacturing nationwide,” she said.

The Energy Department said the loan is contingent on its Loan Programs Office's review of the project under the National Environmental Policy Act.

Biden’s renewable energy agenda aimed at easing U.S. reliance on fossil fuels so as to reduce greenhouse gas emissions is expected to be a key issue in his reelection bid against ex-President Donald Trump, who has said he would focus on drilling for more oil.

The department said lithium carbonate from Thacker Pass could support the production of batteries for up to 800,000 electric vehicles annually, avoiding the consumption of 317 million gallons (1.2 billion liters) of gasoline per year.

“Today’s announcement reinforces the Biden-Harris Administration’s whole-of-government approach to strengthening America’s critical materials supply chain, which is essential to building America’s clean transportation future and enhancing our national and energy security,” DOE said Thursday.

Lithium Americas said the loan would cover the vast majority of the first phase of the Thacker Pass project, which is now estimated to cost $2.93 billion. Last January, General Motors Co. conditionally agreed to invest $650 million in the project.

The conditional commitment to the government's loan “is a significant milestone for Thacker Pass, which will help meet the growing domestic need for lithium chemicals and strengthen our nation’s security,” said Jonathan Evans, president and chief executive officer of Lithium Americas.