Vancouver-based Lithium Americas said on Wednesday that the U.S. Department of Energy (DOE) has taken a 5% stake in the company, along with a separate 5% stake in its Thacker Pass lithium project joint venture with General Motors.
U.S.-listed shares of Lithium Americas jumped 31% to $7.48 in premarket trading.
While the total deal value was not disclosed, Lithium Americas confirmed it has finalized an agreement with the DOE to initiate the first $435 million draw from a previously announced $2.26 billion loan to support development of the Thacker Pass site.
It will be the latest private sector investment by U.S. President Donald Trump’s administration after recent stakes in Intel and MP Materials, seeking to boost industries seen as vital to U.S. national security.
Last week, Reuters that administration officials were in discussions with Lithium Americas about an equity stake as they renegotiated terms of a $2.26 billion government loan for the Nevada-based mine, which is slated to become the largest source of battery metal lithium in the Western Hemisphere.
Representatives for GM were not immediately available to comment.
GM, which invested $625 million in the mine last year for a 38% stake, has the right to buy all of the project’s lithium from its first phase and a portion from the second phase for 20 years.
Administration officials had initially sought a guarantee that GM would buy the metal regardless of market conditions, a request the automaker pushed back on and which led to the equity stake request, Reuters previously reported.
The Thacker Pass project has long been touted by both Republicans and Democrats as a key way to boost U.S. critical minerals production and cut reliance on China, the world’s largest lithium processor.
China plays a dominant role in the global lithium supply chain, producing more than 40,000 metric tons each year, making it the third-largest producer after Australia and Chile. China’s influence is far greater in refining, where it processes over 75% of the world’s lithium into battery-grade material.
The U.S. produces less than 5,000 metric tons of lithium at a Nevada facility owned by Albemarle.
Thacker Pass’s first phase is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year, enough for up to 800,000 EVs.
reuters.com
