The US Government is reportedly negotiating for up to a 10% equity stake in Lithium Americas as part of a renegotiation of the company’s $2.26bn ($C3.14bn) loan from the US Department of Energy for the Thacker Pass lithium project.
The proposed investment is the most recent instance of the Trump administration’s direct involvement in the US economy.
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This intervention mirrors previous actions taken with Intel, MP Materials and other US technology and minerals companies, aimed at bolstering industries deemed essential for national security, reported Reuters.
The Thacker Pass mine, expected to be the largest lithium source in the Western Hemisphere by 2028, is seen as crucial to establishing a domestic supply chain for lithium.
This project, located 25 miles (40km) south of Nevada’s border with Oregon, has the potential to reduce US dependency on Chinese lithium.
Lithium is primarily used in rechargeable lithium-ion (Li-ion) batteries powering consumer electronics, electric vehicles (EVs) and grid-scale energy storage systems.
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By GlobalDataThe US currently produces less than 5,000 tonnes (t) of lithium annually, whereas Thacker Pass aims to produce 40,000t in its initial phase.
According to Reuters, the equity proposal emerged amid discussions to reassess the loan terms due to concerns about low lithium prices driven by Chinese overproduction.
In response, the company offered no-cost warrants equivalent to 5–10% of its common shares.
General Motors (GM), which invested $625m for a 38% stake in the mine, holds rights to purchase all lithium from the first phase and a portion from the second phase for two decades.
However, Trump officials are seeking assurances that GM will commit to these purchases. Additionally, there are efforts to have GM transfer some project control to the government.
