WASHINGTON/RENO — In a move underscoring the strategic importance of critical minerals, the U.S. Department of Energy (DOE) announced it will take a five per cent equity stake in Vancouver-based Lithium Americas, as well as a five per cent stake in its Thacker Pass lithium mining project in northern Nevada. The joint venture, backed by General Motors, is one of the world’s largest lithium developments and is considered vital to reducing U.S. reliance on China for battery materials.
The Thacker Pass mine, currently under construction, is expected to produce 40,000 metric tons of battery-quality lithium carbonate annually in its first phase, enough to support the manufacturing of approximately 800,000 electric vehicles. GM has committed more than $900 million to the project, while Lithium Americas is also advancing a $2.3 billion federal loan package. The DOE confirmed that under the new deal it will defer $182 million in debt service over the first five years of the loan, offering the miner more flexibility to scale operations.
“By strengthening domestic supply chains, this partnership helps reduce our dependence on foreign adversaries for critical minerals and ensures better stewardship of American taxpayer dollars,” U.S. Energy Secretary Chris Wright said in a statement. Both Republicans and Democrats have signaled strong support for the project, citing the urgent need to secure U.S. battery supply chains as global demand for electric vehicles surges.
The deal is the latest in a series of high-profile interventions by the Trump administration into the private sector. Earlier this year, the U.S. government converted billions in funding into a 10 per cent stake in Intel, became the largest shareholder of Las Vegas-based rare earths miner MP Materials with a $400 million investment, and secured revenue-sharing agreements with Nvidia and AMD for sales to China.
Lithium Americas confirmed Wednesday that it reached a non-binding agreement in principle with the DOE to unlock the first draw of $435 million from its federal loan. The White House and the company finalized loan adjustments late last month, paving the way for the project to move forward.
Dan Ives, an analyst with Wedbush, described Thacker Pass as a “massive opportunity” for U.S. energy independence. “Despite having some of the largest deposits, the U.S. has produced less than one per cent of the global lithium supply. This deal helps reduce dependence on foreign adversaries and ensures lithium production will grow exponentially in the coming years,” he said.
Following the announcement, Lithium Americas shares surged more than 33 per cent in pre-market trading Wednesday, reflecting investor confidence in the long-term strategic value of the project.