Trump Administration Eyes Equity Stake in Lithium Americas to Boost U.S. Lithium Production
The Trump administration aims to acquire a 10% stake in Lithium Americas amid loan renegotiations for its Thacker Pass lithium project. Efforts to secure a domestic lithium supply are critical to reducing dependence on China. Discussions involve GM's participation and government safeguards in financing and operations.
The Trump administration is poised to take a significant equity stake in Lithium Americas, possibly up to 10%, as part of ongoing negotiations over the company's $2.26 billion Energy Department loan. The project's Thacker Pass mine could become the Western Hemisphere's largest lithium source when it opens in 2028.
Central to Washington's strategy for securing a domestic lithium supply chain, the project underpins a broader effort to stimulate U.S. production of critical minerals. This move, led by President Trump, follows similar government interventions in other key sectors including tech and minerals to enhance national security.
Negotiations with General Motors, which holds a 38% stake in the project, also focus on ensuring the automaker continues its commitments to buy the lithium, despite fluctuating global prices and competition from China, the world's dominant lithium processor. Lithium Americas is working with the Department of Energy on loan restructuring terms.
(With inputs from agencies.)
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