The U.S. government is acquiring a 5% equity stake in Lithium Americas, the company developing the large-scale Thacker Pass lithium mine in northern Nevada.
This investment also includes a 5% stake specifically in the Thacker Pass lithium mining project, a joint venture between Lithium Americas and General Motors (GM).
The big picture: Thacker Pass is regarded as a key project to reduce American dependence on China, the world’s largest processor of lithium, which is vital for high-tech batteries used in electric vehicles (EVs), cell phones, and renewable energy systems.
- Both Republican and Democratic leaders support increasing domestic lithium production to narrow the supply gap with foreign competitors.
- U.S. Energy Secretary Chris Wright stated the deal will strengthen domestic supply chains, reduce dependence on foreign adversaries, and ensure responsible stewardship of taxpayer funds.
Go deeper: The first phase of Thacker Pass is expected to produce 40,000 metric tons of battery-grade lithium carbonate annually, enough to power approximately 800,000 EVs.
- Lithium Americas has reached a non-binding agreement with the Department of Energy to draw down $435 million on a federal loan, with the DOE deferring $182 million in debt service over the loan’s first five years.
- GM has pledged more than $900 million toward the development of Thacker Pass, which holds enough lithium reserves to support the production of 1 million EVs each year.
Flashback: This stake in Lithium Americas follows previous government investments during the Trump administration, including a 10% stake in Intel and acquisition of 10% ownership of MP Materials, a rare earths mining company in Las Vegas.
- The administration also secured revenue-sharing deals with Nvidia and AMD related to chip sales to China.
