The Trump administration is reportedly seeking an equity stake of up to 10 per cent in Lithium Americas as it renegotiates the terms of the company’s $US2.26 billion ($3.4 billion) Energy Department loan for its Thacker Pass lithium project with General Motors, according to sources familiar with the discussions. This proposed stake represents the latest instance of the Trump administration intervening directly in the American economy, similar to its actions with Intel, MP Materials, and other US tech and minerals firms, to bolster industries deemed critical for national security.
Lithium Americas is a resource company focused on the development of lithium projects, including the Thacker Pass project in Nevada. The Thacker Pass project is poised to become the Western Hemisphere’s largest source of lithium upon its expected opening in 2028. The mine has been under construction for almost a year, employing over 600 contractors at the site, which is located approximately 40 kilometres south of Nevada’s border with Oregon.
Thacker Pass is considered a key component in establishing a domestic lithium supply chain, supporting Washington’s ongoing efforts to increase US lithium production. Lithium is a crucial metal used in the production of batteries for electric vehicles and various other electronics. A White House official stated that President Trump supports the project’s success while ensuring fairness to taxpayers, adding, “But there’s no such thing as free money.”
Following the news of potential government investment, shares of Lithium Americas experienced a significant surge. The company’s stock price rose by approximately 80 per cent, increasing from around $US3 per share to $US5.54 per share in aftermarket trading.
