The United States government is acquiring a minority interest in Lithium Americas, a firm engaged in developing a large lithium mine in northern Nevada. The Department of Energy is set to acquire a five percent equity stake in the Vancouver-based mining company and a similar share in the Thacker Pass lithium mining project, a collaboration with General Motors.
Before the market opened on Wednesday, Lithium Americas’ shares surged by over 33 percent. U.S. Energy Secretary Chris Wright highlighted that the agreement with Lithium Americas would enhance domestic supply chains, reduce reliance on foreign sources for vital minerals, and ensure effective management of taxpayer funds.
The Thacker Pass project is pivotal in lessening the U.S.’s dependence on China for lithium, a crucial element essential for manufacturing batteries used in mobile devices, electric vehicles, and renewable energy technologies. Both political parties endorse the initiative to bridge the production gap, as China currently dominates global lithium processing.
Initial estimates suggest that Thacker Pass could yield 40,000 metric tons of top-quality lithium carbonate annually in its first phase, adequate to power approximately 800,000 electric vehicles. This equity investment in Lithium Americas underscores the government’s recent direct involvement with private enterprises.
The Trump administration is also acquiring a 10 percent stake in Intel by converting previously granted government funds. Additionally, the government injected $400 million USD into MP Materials stock last July to become the leading shareholder in the Las Vegas rare earths mining firm. Trump secured agreements with Nvidia and AMD to receive a 15 percent share of revenue from specific chip sales to China.
Lithium Americas announced an initial agreement with the Department of Energy to access the first installment of a $435 million USD federal loan, with $182 million USD of debt service deferred over the loan’s initial five years. The White House and Lithium Americas from Canada recently made progress in adjusting a $2.3 billion USD federal loan to advance the project for lithium extraction used in electric vehicle batteries.
GM has committed over $900 million USD to support Thacker Pass, which boasts sufficient lithium reserves to produce one million electric vehicles annually. Analyst Dan Ives from Wedbush labeled Thacker Pass as a significant opportunity for the U.S. to lessen reliance on foreign lithium sources, emphasizing the deal’s role in bolstering domestic supply chains and optimizing taxpayer funds as lithium production is projected to surge in the coming years.
