The White House is advancing a deal that would give the U.S. government a small equity stake in Lithium Americas, a Canadian company developing the Thacker Pass lithium mine and processing plant in northern Nevada. This move follows an agreement between the Department of Energy (DOE) and Lithium Americas to modify terms of a $2.3 billion federal loan, which could enable extraction of lithium used in electric vehicle batteries at the site located about 200 miles north of Reno.
General Motors has committed over $900 million to support the development of Thacker Pass, which contains enough lithium to produce batteries for one million electric vehicles each year.
The proposed U.S. equity stake in Vancouver-based Lithium Americas is part of President Donald Trump’s approach to direct government involvement in private industry. Recently, the administration secured a 10% stake in Intel by converting previously granted funds and made the government the largest shareholder in MP Materials with a $400 million investment. The administration also arranged for Nvidia and AMD to provide 15% of revenue from certain chip sales to China back to the U.S. government.
A White House official, speaking anonymously due to ongoing negotiations, declined to reveal the exact size of the planned U.S. stake but described it as “very small” — less than 10%. The official said it would act as “a cash buffer” for Lithium Americas and emphasized that “critical minerals like lithium are very important’ to boost the U.S. economy and restore domestic manufacturing.” The official added: “We’re trying to do this in a way that is fair to the taxpayers. We don’t believe in free money.”
Lithium Americas did not comment directly but stated it is discussing conditions with DOE and General Motors related to accessing federal loan funds: “The topics of these discussions include certain conditions precedent to draw on the DOE Loan and associated loan specifics, as well as incremental requests from the DOE for potential further conditions” required for access.
GM spokesman Jim Cain said Friday that GM remains “confident in the project” but would not comment on negotiations.
Thacker Pass is seen as key for establishing a domestic supply chain for battery production needed by electric vehicles and electronics. The project has received bipartisan support from both Trump’s administration and former President Joe Biden’s administration as part of efforts to reduce dependence on China, which dominates global lithium processing.
In its first phase, Thacker Pass is expected to produce 40,000 metric tons annually of battery-quality lithium carbonate—enough for about 800,000 electric vehicles per year.
However, environmental groups and tribal leaders have opposed development near Thacker Pass due to its proximity to land considered sacred after an 1865 massacre involving Native Americans.
Under Biden, DOE supported Thacker Pass as part of broader efforts against climate change by promoting clean energy technologies over fossil fuels.
Trump has taken a different stance on climate policy. In his recent United Nations speech he called climate change “the greatest con job ever perpetrated on the world,” adding: “If you don’t get away from the green energy scam, your country is going to fail.”
Efforts around domestic lithium mining come amid slowing growth in U.S. electric vehicle sales as consumers express concerns over charging infrastructure and affordability.
Recent legislation passed by congressional Republicans and signed by Trump will end federal tax incentives for new and used EV purchases at month’s end. These credits have saved buyers up to $7,500 per vehicle; their expiration may challenge automakers seeking higher EV sales as consumers rushed this quarter before incentives disappear.
Beyond automotive batteries, lithium plays an essential role in producing glass, chemicals, pharmaceuticals, cell phones, other electronics—and storing renewable wind or solar power.
