US government acquires five per cent stake in Lithium Americas

(MENAFN) The U.S. government has acquired a 5% equity stake in Canadian mining company Lithium Americas, a key supplier of lithium used in electric vehicles (EVs) and battery production, according to reports.

Vancouver-based Lithium Americas confirmed on Tuesday that it had finalized an agreement with the U.S. Department of Energy (DOE) to access the first $435 million of a previously announced $2.26 billion loan, aimed at supporting the development of its Thacker Pass facility in the United States.

Under the deal, the DOE will hold a 5% equity share in Lithium Americas, as well as a separate 5% stake in the Thacker Pass project, which operates as a joint venture between Lithium Americas and 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," Lithium Americas CEO Jonathan Evans said.

The move aligns with Washington’s broader strategy to reduce dependency on China for lithium and other critical materials. The U.S. is also working to secure greater control over semiconductor manufacturing, including its recent acquisition of a 10% stake in chipmaker Intel. In addition, the Department of Defense purchased a 15% ownership share in rare earth mining company MP Materials in July.

Following the announcement, shares of Lithium Americas jumped 32% in after-hours trading.

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