DOE Takes Equity in Lithium Americas to Back $2.26B Loan, Reduce EV Risks

Through no-cost warrants, the Department of Energy acquires equity in Lithium Americas and its Nevada project with GM, signaling a strategic shift toward securing critical minerals

A High-Stakes Deal to Secure Lithium Supply

In a bold move to bolster the domestic supply of critical minerals, the U.S. Department of Energy (DOE) has taken 5% equity stakes in both Lithium Americas and its Nevada-based joint venture with General Motors.

The equity is part of a renegotiated $2.26 billion loan initially granted under the Biden administration to help finance the Thacker Pass lithium project, one of the largest lithium deposits in the United States.

The equity positions were secured through no-cost warrants, meaning the government gains ownership without direct financial investment—offering taxpayers enhanced collateral while minimizing repayment risk.

Why Lithium — and Why Now?

Lithium is a cornerstone material in electric vehicle (EV) batteries, smartphones, and other high-tech systems. Yet despite large domestic reserves, the U.S. currently produces less than 1% of global lithium supply.

“Today’s announcement helps reduce our dependence on foreign adversaries… and ensures better stewardship of American taxpayer dollars,” said U.S. Energy Secretary Chris Wright, attributing the move to President Trump’s leadership.

This marks a strategic policy shift toward resource nationalism and supply chain resilience—particularly as global tensions and competition for critical minerals rise.

Details of the Deal

• DOE Equity Stakes:
  • 5% in Lithium Americas, a Canadian mining company
  • 5% in its joint venture with GM, focused on Thacker Pass
• Instrument: No-cost warrants, allowing the U.S. to buy shares at a set price
• Purpose:
  • Serves as loan collateral
  • Reduces taxpayer risk
  • Gives the U.S. a direct stake in the lithium supply chain

Following the news, Lithium Americas’ stock surged 34% in after-hours trading.

Thacker Pass: A Domestic Game-Changer

The Thacker Pass project in Nevada is expected to produce enough lithium to power 800,000 EVs per year in its first phase alone.

Key milestones:

• GM’s involvement:
  • Invested $625 million in Lithium Americas
  • Acquired 38% ownership
  • Secured exclusive rights to all first-phase lithium production
  • Extended purchase rights for 20 years during second-phase operations
• Production capacity:
  • Total expected output supports 1.6 million EVs over the next two decades
• Federal support:
  • Project was permitted in January 2021 under President Trump
  • Now backed by DOE financing and equity engagement

The Trump Administration’s Broader Push

The equity stakes in Lithium Americas follow a growing trend from the Trump administration to take ownership positions in strategic industries.

Other recent examples include:

• 10% stake in Intel
• 10% stake in MP Materials, operator of a rare earth mine in the U.S.

These actions reflect a new industrial policy model—one where the government plays a more active financial role in shaping domestic production of strategic resources.

Implications for the EV and Tech Sectors

This equity move marks a major step forward in de-risking the EV supply chain for U.S. automakers and tech firms. It provides:

• Stability for long-term lithium access
• Incentives for companies to invest domestically
• Government oversight that can balance environmental, economic, and national security interests

It also sends a strong message that public-private collaboration is no longer optional but essential for competing in the global clean energy race.