Lithium Americas experienced a remarkable surge in its stock value, doubling on Wednesday, following reports that the Trump administration is contemplating taking an equity stake in the Vancouver-based mining company. This development coincides with Lithium Americas’ ongoing efforts to renegotiate a $2.2 billion loan from the Department of Energy for its Thacker Pass lithium project in Nevada.
According to a Trump administration official, the White House has proposed acquiring a stake in the company, a first for a Canadian-based entity, as part of its strategy to gain direct ownership within the critical mineral supply chain, which is vital to U.S. strategic interests. This move, initially reported by Reuters, comes at a time when the Department of Defense took a 15% stake in the rare earth miner MP Materials this past July, highlighting a pattern of increasing involvement in key mineral sectors.
On the stock market, Lithium Americas saw its shares rise by an impressive 95%, closing at $6.01, with a session high at $6.23, more than doubling from the previous day’s close of $3.07. The company, which has its shares listed on both the Toronto Stock Exchange and the NYSE, now commands a market capitalization of approximately $1.5 billion.
The Thacker Pass mine, located in northern Nevada, is expected to become one of North America’s largest lithium sources. The project is a significant venture, with General Motors as a key partner, holding a 38% stake, while Lithium Americas maintains a 62% interest. GM has also committed to buying offtake from the mine once it becomes operational, with the first phase slated to commence by the end of 2027.
However, recent negotiations with the Department of Energy have necessitated revisions to the initial loan agreement, as the conditions for the first disbursement were unmet. Consequently, Lithium Americas and GM are exploring options to defer portions of the loan repayment, with the Trump administration proposing a minority equity stake to mitigate risk to taxpayers and add a financial buffer.
While a final agreement has yet to be reached, the Trump administration reportedly supports the initiative, with discussions described as promising. Nonetheless, any investment in Lithium Americas might require approval from Canadian authorities, given the company’s Canadian jurisdiction.
A spokesperson for Lithium Americas confirmed ongoing discussions with the Department of Energy and GM regarding the loan terms, although GM opted not to provide a comment at this time. Earlier in April, Interior Secretary Doug Burgum hinted at the administration’s interest in taking equity positions in mining companies to support them amid competition with state-backed enterprises from China.
This move, if finalized, marks a strategic push by the administration to secure access to essential resources necessary for electric vehicle battery production, potentially strengthening North American supply chains and reducing reliance on foreign suppliers.