The Trump administration has announced a 5 percent equity ownership in Lithium Americas, along with another 5 percent stake in the company’s joint mining project with General Motors in Nevada. This announcement was made by the Department of Energy, highlighting the significance of the Thacker Pass mine, which is projected to be the largest lithium producer in the Western Hemisphere when it becomes operational in 2028.
Lithium plays a vital role in batteries for electric vehicles, renewable energy storage, and various rechargeable devices. Both the Biden and Trump administrations have aimed to reduce U.S. dependency on foreign lithium imports, and this recent move is part of an effort to enhance domestic supply chains for critical materials.
Once fully operational, the Thacker Pass mine is expected to produce approximately 40,000 metric tons of lithium carbonate annually, significantly higher than the current U.S. production of under 5,000 metric tons. In comparison, China, the third-largest lithium producer after Australia and Chile, already produces about 40,000 metric tons per year.
Construction of the mine began in 2023, facing substantial opposition from local Native American tribes. Reports from organizations such as Human Rights Watch and the American Civil Liberties Union have indicated that the federal government’s approval of the mine may have violated Indigenous rights by not obtaining necessary consent from affected tribes. Additionally, ranchers and environmental groups have raised concerns about the potential impact of the mine on local water resources and endangered species.
In a related financial move, Lithium Americas secured a $2.26 billion loan agreement with the Biden administration in October 2024. The Department of Energy has restructured this loan to include over $100 million in new equity, with Energy Secretary Chris Wright stating that this equity stake is essential for the mine’s long-term viability amidst fluctuating global lithium prices.
Source: https://www.theverge.com/news/790057/lithium-mine-us-trump-us-government-stake-thacker-pass