Trump Administration Seeks Stake in Lithium Americas’ Thacker Pass Mine

Industry Insights from Next Move Strategy Consulting

The Trump administration is pursuing an equity stake of up to 10% in Lithium Americas as it renegotiates terms of a $2.26 billion Department of Energy (DOE) loan for the company’s Thacker Pass project in Nevada.

Equity Talks Amid Loan Restructuring

The equity request surfaced during recent negotiations over adjustments to the project’s amortization schedule, as officials voiced concerns about Lithium Americas’ ability to repay the DOE loan amid depressed lithium prices caused by Chinese overproduction. In response, Lithium Americas offered the government no-cost warrants equating to 5%–10% of its shares and pledged to cover fees linked to the proposed loan adjustments.

Thacker Pass: A Strategic Resource

Located near Nevada’s border with Oregon, Thacker Pass is set to become the Western Hemisphere’s largest lithium mine when it begins operations in 2028. The project is projected to produce 40,000 metric tons of battery-grade lithium carbonate annually in its first phase — enough to power up to 800,000 electric vehicles. With more than 600 contractors already on site, the mine is widely viewed as central to building a secure domestic supply chain for EV and electronics batteries.

General Motors’ Role and Federal Safeguards

General Motors invested $625 million last year for a 38% stake in Thacker Pass and secured rights to purchase all first-phase output and a portion of second-phase production for 20 years. Trump officials are seeking stronger guarantees from GM and are also pressing for certain project controls to be transferred from GM to Washington.

The DOE loan — finalized under the Biden administration — carries a 24-year term with interest rates pegged to U.S. Treasury benchmarks. Safeguard clauses in the original agreement already grant the government authority to assume control of the project in the event of major delays or cost overruns.

Market Reaction and Industry Context

News of the administration’s equity request sent Lithium Americas’ shares surging by nearly 80% in aftermarket trading, climbing from around $3 to $5.54. The development underscores growing bipartisan support for the project as a linchpin of U.S. efforts to reduce dependence on China, which dominates global lithium refining with more than 75% of processing capacity.

Next Move Strategy Consulting – Point of View

Based on the reported details, Next Move Strategy Consulting observes that the administration’s pursuit of an equity stake could reshape the domestic lithium-ion battery landscape by reinforcing Thacker Pass’s financial stability and long-term viability. Stronger federal involvement, combined with GM’s offtake commitments, may accelerate U.S. battery-grade lithium output and reduce strategic reliance on foreign refining. At the same time, the negotiations highlight persistent challenges tied to global price volatility and China’s continued dominance in lithium processing.

Source: Reuters

Prepared By: Next Move Strategy Consulting