WASHINGTON: The Trump administration is seeking an equity stake of up to 10% in Lithium Americas as it renegotiates the terms of the company’s $2.26 billion Energy Department loan for its Thacker Pass lithium project with General Motors.
This proposed stake represents the latest example of the Trump administration intervening directly in the American economy to promote industries it views as critical to national security.
The Thacker Pass mine is slated to become the Western Hemisphere’s largest source of lithium when it opens in 2028 after nearly a year of construction with over 600 contractors.
Seen as a linchpin for building a domestic supply chain, the project is part of Washington’s long-standing drive to boost United States production of the metal used for electric vehicle batteries.
A White House official stated that President Trump supports the project and wants it to succeed while also being fair to American taxpayers.
Shares of Lithium Americas rose by roughly 80% in aftermarket trading following the news, climbing from around $3 to $5.54 per share.
The project has long been touted by both Republicans and Democrats as a key way to boost US critical minerals production and cut reliance on China.
The United States currently produces less than 5,000 metric tons of lithium annually at a Nevada facility owned by Albemarle.
Thacker Pass’s first phase is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year, enough for up to 800,000 electric vehicles.
China produces more than 40,000 metric tons each year and processes over 75% of the world’s lithium into battery-grade material.
The $2.93 billion Thacker Pass project was approved by Trump at the end of his first term, with the loan from the Department of Energy’s Loan Programs Office closed last year by Biden administration officials.
Lithium Americas was slated to make its first draw on the loan earlier this month before Trump officials sought to renegotiate terms amid concerns about repayment ability given low lithium prices.
General Motors invested $625 million in the mine last year for a 38% stake and holds the right to buy all of the project’s lithium from its first phase.
Trump officials are now seeking a guarantee that GM will purchase the metal and are pushing for the automaker to relinquish control over parts of the project.
A GM spokesperson expressed confidence in the project, noting that it supports the administration’s goals and that Trump strongly supported the mine in his first term.
Lithium Americas declined to comment on ongoing negotiations but confirmed active discussions with the Department of Energy and GM.
Washington has safeguards in place to protect its investment, including clauses that give the government the option to take over the project if delayed or facing major cost overruns.
The company has offered the government no-cost warrants equating to 5% to 10% of its common shares to secure the funding. – Reuters
