WASHINGTON (AP) — The White House is moving forward with a deal that would allow the U.S. government to take a small equity stake in a Canadian company that is developing one of the world’s largest lithium mines in northern Nevada, according to an official statement.
The Department of Energy and Lithium Americas, the developer of the proposed Thacker Pass lithium mine and processing plant located about 200 miles north of Reno, have agreed on alterations to a $2.3 billion federal loan which could facilitate the project's advancement in extracting lithium essential for electric vehicle batteries.
General Motors has committed more than $900 million to assist in developing Thacker Pass, which possesses sufficient lithium to manufacture 1 million electric vehicles annually.
The prospective equity stake in Vancouver-based Lithium Americas marks yet another industry intervention by the Trump administration, reminiscent of government actions such as acquiring a 10% share in Intel via the conversion of previous government funding, and spending $400 million on MP Materials stock that made the U.S. the largest stakeholder in the Las Vegas rare earths miner.
A White House official, who requested anonymity, indicated that the government's equity stake in Lithium Americas would be “very small” — under 10% — serving primarily as a financial cushion for the company.
“We support the project moving forward,” the official stated. “Critical minerals like lithium are vital for boosting the U.S. economy and reviving domestic manufacturing. We’re committed to ensuring taxpayers are treated fairly; we don’t believe in free money.”
Though a spokesperson for Lithium Americas did not provide comments, the company acknowledged active discussions with the Department of Energy and General Motors regarding the loan terms.
“These discussions cover certain conditions necessary for accessing the DOE loan and potential further requirements imposed by the DOE,” the statement conveyed.
Thacker Pass is poised to produce roughly 40,000 metric tons of battery-quality lithium carbonate each year during its initial phase, potentially powering 800,000 electric vehicles and establishing a much-needed infrastructure for the domestic supply chain amid heightened demand for electric vehicles.
Both Republicans and Democrats back the mine project as a strategic move to enhance U.S. critical minerals production. However, environmental groups and indigenous tribes have contested it, citing concerns about the site’s proximity to historical landmarks.
A recent law enacted by congressional Republicans, signed by Trump, is set to phase out federal incentives for electric vehicle purchases, which could further complicate the trajectory of U.S. electric vehicle sales.
A spokesperson for GM stated the company remains “confident in the project,” although they chose not to elaborate on the negotiations.
