This move is part of US efforts to help counter China’s control of the lithium market.
The US Department of Energy (DoE) has restructured its deal with Lithium Americas Corporation (LAC) to take a 5% equity stake in the company and a separate 5% stake in the company’s Thacker Pass lithium project joint venture (JV) with General Motors.
This move is part of US efforts to help counter China’s control of the lithium market.
The 5% equity ownership comes in the form of LAC warrants and a 5% ownership in the form of warrants in the JV.
The restructuring of the deal was carried out by the Loan Programs Office (LPO).
The LPO incorporates warrants into the overall collateral package for a loan, which helps mitigate repayment risks for taxpayers.
The DoE collaborated with both parties to enhance the loan’s resilience.
The updated agreement features strong loan modifications and includes more than $100m (C$139.28m) in new equity, stated the DoE.
The government’s stake in the Nevada project is part of US President Donald Trump’s agenda to secure access to what is claimed to be the largest confirmed lithium deposit in North America.
US Energy Secretary Chris Wright said: “Despite having some of the largest deposits, the United States produces less than 1% of the global supply of lithium. Thanks to President Trump’s bold leadership, American lithium production is going to skyrocket.
“Today’s announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars. President Trump promised to do both and he is delivering.”
The financial loan agreement was initially signed between the LPO and Lithium Americas in October 2024.
The updated terms of the agreement will provide funding for the construction of facilities dedicated to producing lithium carbonate at Thacker Pass.
Upon reaching full operational capacity, the facility is projected to produce around 40,000 tonnes per year (tpa) of battery-grade lithium carbonate.
This production will support the manufacturing of lithium-ion batteries and contribute to the Trump administration’s goal of strengthening US supply chains by onshoring production.