WASHINGTON--The Trump administration is seeking an equity stake of as much as 10% in Lithium Americas as it renegotiates terms of the company's $2.26 billion Energy Department loan for its Thacker Pass lithium project with General Motors, two people familiar with the discussions told Reuters.
The proposed stake is the latest example of the Trump administration intervening directly in the American economy as it has in taking stakes in Intel, MP Materials and other U.S. tech and minerals firms to promote industries it sees as critical to national security.
Slated to become the Western Hemisphere's largest source of lithium when it opens in 2028, the Thacker Pass mine has been under construction for nearly a year with more than 600 contractors at the site roughly 25 miles (40 km) south of Nevada's border with Oregon.Thacker Pass is seen as a linchpin in building a domestic supply chain part of Washington's long-standing drive to boost U.S. production of lithium, a metal used to make batteries for electric vehicles and other electronics.
"President Trump supports this project. He wants it to succeed and also be fair to taxpayers," a White House official told Reuters. "But there's no such thing as free money."
Shares of Lithium Americas rose by roughly 80%, from around $3 a share to $5.54 a share, in aftermarket trading following the news. The project has long been touted by both Republicans and Democrats as a key way to boost U.S. critical minerals production and cut reliance on China, the world's largest lithium processor.
The U.S. produces less than 5,000 metric tons of lithium 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 EVs.
China plays a dominant role in the global lithium supply chain, producing more than 40,000 metric tons each year, making it the third-largest producer after Australia and Chile. China's influence is far greater in refining, where it 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. The loan from the Department of Energy's Loan Programs Office (LPO) was closed last year by Biden administration officials. The loan has a 24-year term, with interest rates based on the U.S. Treasury rate as each tranche is drawn.
Lithium Americas was slated to make its first draw on the loan earlier this month but Trump officials sought to renegotiate terms amid concerns about the company's ability to repay the loan given low lithium prices due to Chinese overproduction, according to the sources.
