WASHINGTON, DC – The U.S. government has acquired a 5% equity stake in Canadian mining company Lithium Americas and its Nevada lithium mining venture, marking a significant push to reduce American dependence on foreign mineral sources critical to the electric vehicle industry.
The Department of Energy’s Loan Programs Office granted no-cost warrants to secure the stake as part of a $2.26 billion loan package to develop the Thacker Pass lithium mine in Nevada. The project is a joint venture between Lithium Americas and automotive giant General Motors, which already owns 38% of the mining company.
Energy Secretary Chris Wright touted the investment as a major step toward domestic lithium production independence. “Thanks to President Trump’s bold leadership, American lithium production is going to skyrocket,” Wright said in announcing the deal.
The Thacker Pass mine is expected to produce enough lithium for 800,000 electric vehicles in its first phase of operation, with total production capacity reaching enough material for 1.6 million EVs over a 20-year period. The massive output would significantly boost U.S. lithium supplies at a time when the country produces less than 1% of the global lithium supply.
The investment represents a strategic shift in federal policy toward taking equity positions in critical mineral and technology companies deemed vital to national security and economic interests. Lithium is essential for manufacturing batteries used in electric vehicles and energy storage systems, making domestic production a priority as EV adoption accelerates.
Financial markets responded enthusiastically to the announcement, with shares of Lithium Americas spiking 34% following news of the government investment and loan package. The surge reflects investor confidence in the project’s viability backed by federal support.
The Thacker Pass project was originally permitted during the first Trump administration in January 2021, but development was delayed pending final financing arrangements. The new loan and equity package clears the way for construction to begin on what will become one of the largest lithium mining operations in North America.
General Motors’ significant stake in the venture ensures a dedicated supply chain for the automaker’s expanding electric vehicle lineup, while the government’s equity position gives taxpayers a potential return on the substantial loan investment.
The deal is part of a broader administration strategy to secure domestic supplies of critical minerals including lithium, rare earth elements, and other materials essential to clean energy technologies and national defense applications.
