TLDR
- Trump administration wants up to 10% equity stake in Lithium Americas during $2.26 billion loan renegotiation
- LAC stock jumped 80% from $3 to $5.57 in pre-market trading Wednesday
- Thacker Pass Nevada mine will become Western Hemisphere’s largest lithium source by 2028
- Government demands GM guarantee lithium purchases and transfer project control
- Deal part of Trump’s strategy to secure critical mineral supply chains
Lithium Americas stock exploded 80% in pre-market trading after reports emerged that the Trump administration is seeking government ownership in the mining company.
The federal government wants up to 10% equity while renegotiating Lithium Americas’ $2.26 billion Energy Department loan for its Thacker Pass lithium project.
Shares rocketed from around $3.00 to $5.57 before market open Wednesday. The stock closed Tuesday at $3.07.
“President Trump supports this project. He wants it to succeed and also be fair to taxpayers,” a White House official said. “But there’s no such thing as free money.”
This move continues Trump’s pattern of taking stakes in companies deemed critical to national security. The administration previously invested in Intel and MP Materials.
Government Pushes for Control
Trump officials halted Lithium Americas’ planned loan draw earlier this month over repayment concerns. Low lithium prices from Chinese overproduction raised questions about the company’s ability to service the debt.
The administration now demands more guarantees and control over the project. Officials want General Motors to guarantee its lithium purchases from the mine.
GM invested $625 million last year for a 38% stake in Thacker Pass. The automaker has rights to buy all lithium from the first phase production for 20 years.
Trump officials are also pushing GM to transfer some project control to Washington. The government wants more say in how the mine operates.
In response to the equity demands, Lithium Americas offered no-cost warrants worth 5% to 10% of its common shares this week. The company also agreed to cover fees from changing the loan’s payment schedule.
Thacker Pass Project Details
The Thacker Pass mine sits 25 miles south of Nevada’s Oregon border. Construction began nearly a year ago with over 600 contractors on site.
When operational in 2028, Thacker Pass will produce 40,000 metric tons of battery-quality lithium carbonate annually. This output can supply batteries for 800,000 electric vehicles per year.
The $2.93 billion project was approved by Trump during his first term. The Biden administration later closed the Energy Department loan with 24-year terms.
The U.S. currently produces less than 5,000 metric tons of lithium annually. China dominates global lithium processing, handling over 75% of worldwide production into battery-grade material.
Both Republicans and Democrats support Thacker Pass as crucial for reducing Chinese dependence. The mine represents America’s largest known lithium deposit.
GM called the loan “necessary financing to commercialize this important national resource.” The automaker remains confident in the project despite ongoing negotiations.
Lithium Americas, valued at roughly $750 million, declined to comment on specific negotiations. The company said it remains in active discussions with the Energy Department and GM.
The deal reflects Trump’s broader push to secure domestic critical mineral supply chains through direct government investment.
