❓WHAT HAPPENED: The U.S. government has taken a minority stake in Lithium Americas to support the development of one of the world’s largest lithium mines in northern Nevada.
👤WHO WAS INVOLVED: The U.S. Department of Energy, Lithium Americas, General Motors, and U.S. Energy Secretary Chris Wright.
📍WHEN & WHERE: The agreement was announced on October 1, focusing on the Thacker Pass project in northern Nevada.
💬KEY QUOTE: “This deal helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars.” – Chris Wright
🎯IMPACT: The project aims to reduce U.S. reliance on China for lithium, with production set to grow exponentially, potentially powering 800,000 electric vehicles (EVs) annually in its first phase.
The U.S. Department of Energy has taken a five percent equity stake in Lithium Americas, a Vancouver-based company developing the Thacker Pass lithium project in northern Nevada. The site, considered one of the largest known lithium reserves in the United States, is central to efforts to reduce America’s reliance on China for critical minerals essential to electric vehicles, smartphones, and renewable energy technologies.
Developed as a joint venture with General Motors, the Thacker Pass project is expected to produce 40,000 metric tons of battery-grade lithium carbonate annually in its initial phase. That output would be enough to power approximately 800,000 electric vehicles per year. GM has committed over $900 million to the project, which is estimated to hold enough lithium to support batteries for one million electric vehicles (EVs) annually.
The Department of Energy also agreed to defer $182 million in debt service for the first five years of a $435 million federal loan issued to Lithium Americas. Additionally, recent amendments to a $2.3 billion loan agreement with the company have cleared the way for construction and production to move forward.
“This deal helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars,” said U.S. Energy Secretary Chris Wright.
The announcement sent Lithium Americas’ stock soaring more than 33 percent, signaling strong investor confidence. Dan Ives, an analyst with Wedbush Securities, described the project as a “massive opportunity” for the U.S. to reduce China’s near-total dominance of the global lithium processing market.
The federal government’s backing of Thacker Pass comes amid a broader push to secure domestic sources of critical minerals. That push has accelerated under the Trump administration, which has reversed several Biden-era climate policies while focusing on energy independence and resource development.
In recent months, the Trump administration has committed to expand domestic mining, processing, and battery production capacity, including support for companies like MP Materials. It has also imposed steep tariffs on key battery components from China, including a 160 percent combined duty on graphite anode materials.
Meanwhile, a minerals deal with Ukraine finalized earlier this year grants the U.S. preferential access to new mining licenses, with revenues shared through a joint reconstruction fund.
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