Trump Administration's Bold Move for Lithium Stake
The Trump administration seeks a 10% equity stake in Lithium Americas as negotiations unfold over a $2.26 billion Energy Department loan for its Thacker Pass project. The initiative aims to bolster U.S. lithium production, a key component for EV batteries, amid China's dominance in the market.
The Trump administration is negotiating an equity stake of up to 10% in Lithium Americas as part of the ongoing discussions regarding the company's $2.26 billion loan from the Energy Department for its Thacker Pass lithium project, trusted sources disclosed to Reuters.
With Thacker Pass poised to become the Western Hemisphere's largest lithium source by 2028, the mine is critical to U.S. efforts to reduce reliance on China's lithium supply chain dominance. The project, approved during Trump's term, has received bipartisan support for its potential to boost domestic critical minerals production.
GM, holding a 38% stake in the mine, is crucial for the project's success, given its pledge to purchase substantial lithium quantities. As the negotiations continue, the government seeks measures to ensure the project's timely and cost-effective progress.
(With inputs from agencies.)
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