The U.S. government, under President Donald Trump, is reportedly considering purchasing a 10 percent stake in Canadian lithium mining company Lithium Americas. This potential investment aligns with a $2.2 billion loan from the U.S. Department of Energy aimed at the Thacker Pass mining project in northern Nevada, which is poised to be the largest lithium operation in the Western Hemisphere.

Lithium Americas confirmed ongoing discussions with both the Department of Energy and General Motors regarding the project. The move reflects the administration’s strategy to increase government involvement in critical sectors to reduce reliance on China, which currently dominates lithium refining, processing over 75 percent of the global supply.

The Thacker Pass project is integral to enhancing the U.S. domestic supply chain for lithium, essential for electric vehicle batteries and electronics. The Trump administration’s tendency to acquire equity stakes in companies, such as in chipmaker Intel and rare earths firm MP Materials, is seen as a politically favorable financing strategy.

Shares of Lithium Americas have surged by approximately 90 percent, with the company valued at $744.5 million. General Motors previously invested $625 million in the project, holding a 38 percent stake and a long-term agreement to purchase lithium from the operation. Analysts suggest that a government stake could bolster project funding and financial viability, although it may dilute existing shareholders. Production at Thacker Pass is projected to commence in 2028.



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