U.S. DOE Lands Deal with Lithium Americas

(MENAFN) The US government has secured a 5% equity position in Lithium Americas, a leading Canadian mining company critical to electric vehicle (EV) battery production.

On Tuesday, Vancouver-based Lithium Americas disclosed an agreement with the US Department of Energy (DOE) to access the initial $435 million tranche of a $2.26 billion loan aimed at advancing its Thacker Pass lithium project in Nevada.

Under this deal, the DOE will acquire a 5% ownership stake not only in Lithium Americas but also in the Thacker Pass venture, a collaboration between Lithium Americas and automaker General Motors.

“We greatly appreciate the support of the Administration, General Motors and our partners in advancing this vital world-class project. Together, we are onshoring large-scale US lithium production, strengthening America’s supply chain, creating exceptional jobs and enhancing our long-term energy security and prosperity," said Lithium Americas CEO Jonathan Evans.

This strategic investment reflects Washington’s intensified drive to curtail dependence on China for essential minerals. It follows similar moves in the technology sector, including the US government’s recent 10% stake purchase in chipmaker Intel.

In a related development, the Department of Defense took a 15% stake in rare earth miner MP Materials in July.

Shares of Lithium Americas surged 32% in after-hours trading on Tuesday following the announcement.

Thacker Pass: A Critical Asset for US Supply Chains
Located in Nevada, the Thacker Pass project sits atop one of the world’s richest lithium deposits and is pivotal for the US to reduce reliance on Chinese raw materials. Scheduled to begin operations in 2028, the site is projected to become the largest lithium producer in the Western Hemisphere.

General Motors holds a 38% stake in the project after investing $625 million last year. The automaker has secured a 20-year first right to purchase all lithium output from the project’s initial phase and part of the second phase, intending to supply its expanding EV lineup.

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