White House moves toward U.S. equity stake in Nevada lithium project
DOE restructures a $2.3 billion loan for the Thacker Pass mine; the stake would be small, with GM contributing more than $900 million to the project
WASHINGTON — The White House is moving forward with a plan to grant the U.S. government a small equity stake in Lithium Americas, the Vancouver-based developer of the Thacker Pass lithium project and processing facility about 200 miles north of Reno.
Under a restructuring of a $2.3 billion federal loan approved last year, the government would take an equity stake in Lithium Americas that would be very small — less than 10% — and would serve as a cash buffer to help move the project toward production, a White House official said. DOE and Lithium Americas have been discussing changes to the loan terms to allow the project to progress toward mining and processing lithium for batteries.
GM has pledged more than $900 million to help develop Thacker Pass, which is expected to produce about 40,000 metric tons of battery-quality lithium carbonate per year in its first phase, enough to power roughly 800,000 electric vehicles. The deal comes as the project is framed as a crucial step in building a domestic supply chain for batteries and other electronics, reducing dependence on foreign sources of lithium.
Lithium Americas said in a statement that it is in discussions with the Department of Energy and General Motors regarding the DOE loan, including certain conditions precedent to draw on the loan and potential incremental requests from the DOE for additional conditions. A GM spokesman said the company remains confident in the project but declined to comment on negotiations.
A White House official emphasized that the plan would advance a project viewed as critical to U.S. manufacturing and climate goals, while also protecting taxpayers. The official, who spoke on condition of anonymity, said the White House supports the project moving forward and that critical minerals like lithium are important to boosting the U.S. economy and domestic production while ensuring a fair approach to public funds.
Thacker Pass sits on a site that has long been controversial, drawing opposition from environmental groups and some tribal leaders who argue the project encroaches on culturally sensitive land. Proponents, however, say the mine would create jobs, strengthen the domestic minerals supply chain, and help power batteries for electric vehicles and other technologies.
The development unfolds as the broader U.S. EV market faces headwinds, with sales growth slowing and federal incentives for new and used EV purchases set to phase out under a recent law passed by Congress and signed by the president. Advocates say the lithium project could nevertheless help stabilize supply chains and spur investment in U.S. manufacturing, even as policymakers weigh the balance between incentivizing green energy and safeguarding taxpayers.
In recent months, the administration has signaled a willingness to use government tools to bolster critical minerals production and other technology supply chains, an approach that has drawn praise from supporters who view it as a necessary hedge against geopolitical risk and supply disruptions.