The Trump administration is pursuing up to a 10% ownership stake in Lithium Americas Corp. (NYSE:LAC) as part of talks to restructure a $2.26 billion federal loan supporting the company's Thacker Pass lithium mine in Nevada.
The project, partly backed by General Motors with a $625 million investment for a 38% share, is expected to become the largest lithium operation in the Western Hemisphere when production begins in 2028, according to Reuters.
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Government Involvement
Similar to its actions with Intel and MP Materials, the administration is framing a direct stake in Lithium Americas as part of a national security strategy.
A White House official said President Donald Trump wants the mine to succeed, but emphasized that taxpayers should also benefit from the deal.
Importance of Thacker Pass
Located about 25 miles south of the Oregon border, the mine is intended to strengthen America's domestic lithium supply chain, reducing reliance on China, which dominates refining and processing.
In its first phase, the mine could produce 40,000 metric tons of lithium carbonate annually — enough to power as many as 800,000 electric vehicles.
Loan Negotiations
The Department of Energy originally approved the 24-year loan during Biden's term, but Trump officials are now pressing for new terms due to concerns over weak lithium prices driven by Chinese oversupply.
In return for finalizing the financing, the administration is requesting equity and greater oversight of the project, including possible concessions from GM.
Lithium Americas has offered Washington warrants equal to 5%–10% of common shares as part of negotiations.
Industry Context
Alongside Lithium Americas, companies such as Exxon Mobil, Standard Lithium and ioneer are advancing U.S. projects to challenge China's influence.
Washington has protections in place to safeguard public funds, including the option to assume control if the project faces major setbacks.
GM, which has exclusive rights to purchase output from the mine's first production phase, views the loan as essential to scaling its EV battery material supply.
LAC Price Action: Lithium Americas shares were up 74.27% at $5.35 in Tuesday’s extended trading, according to data from Benzinga Pro.
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