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The U.S. Department of Energy has taken equity stakes in Canadian company Lithium Americas and its Nevada mining joint venture with General Motors as part of a renegotiation of a federal loan.<\/p>\n
Under the new terms, the U.S. government will take a 5% equity ownership in Lithium Americas and a 5% ownership in the Lithium Americas-GM joint venture. The equity stakes will be acquired through no-cost warrants, which are financial instruments that give the government the right to purchase shares at a set price. The new terms came out of a renegotiation with the DOE\u2019s Loan Programs Office over a $2.26 billion loan<\/a> that was awarded to Lithium Americas under the Biden Administration.<\/p>\n Shares of Lithium Americas spiked 34% in after-hours trading.<\/p>\n The DOE said the equity stakes will serve as additional collateral on the loan, helping to reduce repayment risk for taxpayers.\u00a0Lithium is a key chemical element that is used in the batteries of electric vehicles and smartphones.<\/p>\n \u201cDespite having some of the largest deposits, the United States produces less than 1% percent of the global supply of lithium. Thanks to President Trump\u2019s bold leadership, American lithium production is going to skyrocket,\u201d\u00a0U.S. Energy Secretary Chris Wright\u00a0said in a press release. \u201cToday\u2019s 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.\u201d<\/p>\n The announcement Tuesday is the latest action by the Trump administration to take ownership stakes in companies. The Trump administration has announced plans to take a 10% stake in Intel<\/a> and MP Materials, which operates a rare earth minerals mine in the United States.<\/p>\n Lithium Americas is developing the Thacker Pass mine in Nevada, which is expected to produce enough lithium to make as many as 800,000 electric vehicles per year in the first phase. President Trump approved the permit for the project in January 2021, at the end of his first term.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco<\/span> GM bought a 38% stake in Lithium Americas last year for $625 million, which gave the automaker the right to buy the entirety of the first phase of production, and lithium from the mine for 20 years during the second phase. In total, that would be enough lithium for 1.6 million EVs over the next two decades.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 27-29, 2025<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n