U.S. government takes 5% stake in Lithium Americas and Thacker Pass project
The U.S. Department of Energy will take a 5% equity stake in Lithium Americas and a 5% stake in the Thacker Pass lithium project after agreeing to loan modifications tied to a $2.3 billion federal loan, including a non‑binding agreement to draw $435 million and a $182 million deferral of debt service over the first five years. Thacker Pass’s first phase is projected to produce about 40,000 metric tons of battery‑quality lithium carbonate per year (roughly enough for 800,000 EVs), has secured more than $900 million in commitments from GM, and the announcement sent Lithium Americas shares up over 30% as officials said the move would help reduce dependence on foreign adversaries.
Energy
Economy
🔍 Key Facts
- The U.S. Department of Energy (DOE) will take a 5% equity stake in Lithium Americas and a 5% stake in the Thacker Pass lithium project joint venture; the White House described the proposed U.S. equity stake as “very small” (under 10%) intended to act as a cash buffer.
- The equity deal and adjustments are tied to a $2.3 billion federal loan approved last year; Lithium Americas reached a non‑binding agreement to draw the first $435 million tranche and the DOE will defer about $182 million of debt service over the first five years.
- Thacker Pass in northern Nevada is projected in phase one to produce about 40,000 metric tons of battery‑quality lithium carbonate per year — roughly enough to power an estimated 800,000 electric vehicles — and General Motors has pledged more than $900 million to the project.
- Market reaction: Lithium Americas shares spiked more than 30% on the announcement of the DOE stake and loan changes.
- Energy Secretary Chris Wright said the move is intended to reduce U.S. dependence on foreign adversaries for critical minerals.
📰 Sources (2)
U.S. government taking stake in company operating massive lithium mine in Nevada
New information:
- DOE will take a 5% equity stake in Lithium Americas and a 5% stake in the Thacker Pass lithium project (joint venture).
- Lithium Americas reached a non‑binding agreement in principle to draw the first $435 million on a federal loan; DOE will defer $182 million of debt service over the first five years.
- Thacker Pass first‑phase production expected at 40,000 metric tons of battery‑quality lithium carbonate per year (estimated to power ~800,000 EVs); GM has pledged more than $900 million to the project.
- Market reaction: Lithium Americas shares spiked more than 30% on the announcement.
- Named official quote from Energy Secretary Chris Wright emphasizing reduced dependence on foreign adversaries for critical minerals.
Trump moves toward deal to give US an equity stake in company developing Nevada lithium mine
New information:
- DOE and Lithium Americas have agreed on loan changes tied to a $2.3 billion federal loan approved last year
- White House official described a proposed U.S. equity stake as 'very small' — less than 10% — to act as a cash buffer
- Thacker Pass (northern Nevada) is projected to produce ~40,000 metric tons of battery‑quality lithium carbonate per year in phase one; GM has pledged >$900 million