The U.S. Department of Energy (DOE) has restructured its agreement with Lithium Americas Corp. (LAC), with support from General Motors (GM), to strengthen protections for taxpayers and advance domestic lithium production. The revised terms, announced by DOE Secretary Chris Wright, give the federal government a 5% equity stake in LAC through warrants and an additional 5% in the LAC/GM joint venture.
Warrants are used by the DOE’s Loan Programs Office (LPO) as part of loan collateral to reduce repayment risk for taxpayers. The updated deal also includes more than $100 million in new equity and enhanced loan amendments designed to make the loan more resilient.
According to Secretary Wright, “Despite having some of the largest deposits, the United States produces less than 1% percent of the global supply of lithium. Thanks to President Trump’s bold leadership, American lithium production is going to skyrocket.” He added, “Today’s announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars. President Trump promised to do both and he is delivering.”
The initial financial agreement between LPO and LAC was signed in October 2024. The new structure will help fund construction at Thacker Pass, which is expected to produce about 40,000 tonnes per year of battery-grade lithium carbonate when fully operational. This output will be used in lithium-ion batteries and supports efforts to move U.S. supply chains onshore.
DOE stated that it uses various tools—including warrants—to protect taxpayer interests in all loans, a practice previously applied in agreements such as the one with Tesla in 2010. The department emphasized that every applicant and borrower undergoes thorough review to ensure taxpayer funds are used effectively.
