White House Advances Deal for Lithium Mine Investment

Mon Oct 20 2025 23:55:08 GMT+0300 (Eastern European Summer Time)

The U.S. government is set to take an equity stake in a Canadian firm involved in the development of a major lithium mine in Nevada, crucial for electric vehicle batteries.

The Biden administration is advancing a deal to acquire a minor equity stake in Lithium Americas, which is developing the Thacker Pass lithium mine in Nevada. This initiative stems from a $2.3 billion federal loan agreement that aims to bolster domestic lithium production essential for electric vehicle batteries. The deal reflects a rare bipartisan consensus on the importance of domestic production of critical minerals, amid broader discussions on U.S. economic growth and climate change mitigation.

WASHINGTON (AP) — The White House is moving forward with a deal that would allow the U.S. government to take a small equity stake in a Canadian company that is developing one of the world’s largest lithium mines in northern Nevada, an official said.

The Department of Energy and Lithium Americas, developer of the proposed Thacker Pass lithium mine and processing plant about 200 miles north of Reno, have agreed on changes to a $2.3 billion federal loan that could allow the project to move forward to extract the silver-white metal used in electric vehicle batteries. General Motors has pledged more than $900 million to help develop Thacker Pass, which holds enough lithium to build 1 million electric vehicles annually.

The proposed equity stake in Vancouver-based Lithium Americas is the latest example of President Trump's administration intervening directly in private companies. The government is getting a 10% stake in Intel through the conversion of billions in previously granted government funds and pledges. The administration spent $400 million of taxpayer money in July on MP Materials stock to make the U.S government the biggest owner in the Las Vegas rare earths miner. Trump also made a deal with Nvidia and AMD to give the U.S. government a 15% cut of revenue from selling certain chips to China.

A White House official declined to specify the size of the U.S. stake in Lithium Americas but said it would be very small — less than 10% — and serve as a cash buffer for the company. Lithium Americas asked the Energy Department to restructure the federal loan, which was approved last year by the Biden administration.

“We support the project moving forward,' said the White House official, granted anonymity to discuss a deal that is not yet completed. “Critical minerals like lithium are very important to boost the U.S. economy and restore domestic manufacturing,” they added, stating the administration doesn’t support “free money.”

A spokesman for Lithium Americas declined to comment but noted that discussions with the DOE and General Motors continue. The mine is considered essential for building a domestic supply chain for batteries in electric vehicles and represents a rare instance of bipartisan support to enhance American critical minerals production and reduce reliance on China.

Thacker Pass is expected to produce 40,000 metric tons of battery-quality lithium carbonate annually, enough to power 800,000 electric vehicles during its first phase. As such, it signifies a vital step towards achieving U.S. energy independence in critical technologies.