WASHINGTON (AP) — The White House is advancing a plan that would enable the U.S. government to take a small equity stake in Canadian company Lithium Americas, which is developing one of the world's largest lithium mines at Thacker Pass in northern Nevada.
The Department of Energy has reached an agreement with Lithium Americas on modifications to a $2.3 billion federal loan that could expedite the lithium extraction process vital for electric vehicle batteries. With sufficient lithium resources to potentially build approximately 1 million electric vehicles annually, General Motors has already committed over $900 million to the Thacker Pass project.
The proposed equity stake in the Vancouver-based company is part of a broader pattern of government intervention in private enterprises during the Trump administration, which previously included a 10% stake in Intel and significant investments in the rare earths miner MP Materials.
While the size of the U.S. stake in Lithium Americas is not publicly defined, it is expected to be under 10% and intended to provide financial cushioning for the company. Reports indicate that Lithium Americas has sought to restructure the existing federal loan initially approved last year.
“We support the project moving forward,” indicated a White House official, who did not disclose further details. The official emphasized the importance of critical minerals such as lithium in enhancing the U.S. economy and domestic manufacturing.
Discussions between Lithium Americas and the Department of Energy are ongoing, related to loan specifics and potential additional requirements for accessing federal funds. GM expressed confidence in the project’s future but refrained from commenting on the negotiations.
Thacker Pass is pivotal for establishing a domestic supply chain for electric vehicle batteries, enjoying bipartisan support from both Republicans and Democrats eager to minimize reliance on foreign lithium, especially from China. It is projected to generate 40,000 metric tons of quality lithium annually, sufficient to fuel 800,000 electric vehicles.
Despite the obstacles and opposition from environmental groups and tribal leaders concerned about historical sites, the Biden administration is backing the project as a climate action initiative, promoting a transition away from fossil fuels.
The momentum toward lithium production is significant as the U.S. struggles to maintain electric vehicle sales, especially after the recent phase-out of federal incentives for EV purchases implemented in a tax law approved by congressional Republicans.
The growing demand for lithium extends beyond electric vehicles to other technology, underscoring its essential role in the current economy and future efforts towards sustainable energy solutions.
