The Trump administration is pressing for up to a 10% equity stake in Lithium Americas, the company behind the massive Thacker Pass lithium project in Nevada, as part of a renegotiation of a $2.3 billion Department of Energy loan.
A Strategic Play
Thacker Pass is set to become the largest lithium source in the Western Hemisphere, with its first phase projected to produce about 40,000 metric tons of battery-grade lithium carbonate annually — enough to power nearly 800,000 electric vehicles. For Washington, this mine is seen as a cornerstone in reducing reliance on Chinese-controlled supply chains and strengthening America’s position in the global energy transition.
The White House has framed the equity request as ensuring “fairness to taxpayers.” Lithium Americas has reportedly offered warrants that could convert into a 5–10% stake, while also adjusting repayment schedules to secure the loan.
A Pattern of Stakes
This move isn’t isolated. The administration has already taken shares in Intel and MP Materials, reinforcing a strategy of government-backed ownership in companies critical to national security and industrial resilience. Thacker Pass now joins that list, highlighting how minerals are increasingly treated like semiconductors — vital infrastructure where Washington wants direct influence.
Market Reaction: News of the potential deal sent Lithium Americas shares surging nearly 80% in aftermarket trading, signaling how investors view government backing as both stabilizing and lucrative.
Tensions With Partners
General Motors, which holds a 38% stake in the project and rights to buy much of its initial lithium output, may face pressure to adjust its role. Reports suggest Washington is also seeking guarantees on purchase contracts and could push GM to cede some control of the mine.
Risks Ahead
- Volatility in pricing: Lithium markets remain highly sensitive to Chinese overproduction, which has already depressed prices.
- Dilution of corporate control: A government stake could complicate decision-making and raise concerns about balancing commercial and political priorities.
- Execution delays: Negotiations over equity and loan restructuring could slow construction and financing, testing timelines for the mine’s 2028 opening.
Trump’s push into Thacker Pass fits a broader pattern: Washington no longer wants to just fund strategic projects — it wants to own a piece of them. Whether in semiconductors, rare earths, or now lithium, the administration is signaling a new era of industrial policy where the government acts not only as regulator and lender but as shareholder in the future of critical industries.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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