WASHINGTON— U.S. Department of Energy (DOE) Secretary Chris Wright today announced the Loan Programs Office (LPO) has restructured its deal with Lithium Americas Corp. (LAC) with support from General Motors (GM) to further protect taxpayers and solidify the launch of the only domestic source of lithium carbonate here in America.
The new terms provide the U.S. Government with 5% equity ownership in the form of LAC warrants as well as an additional 5% ownership in the form of warrants in the LAC/GM joint venture. LPO utilizes warrants as part of the overall collateral package on a loan, helping to reduce repayment risk for taxpayers. DOE was able to work with both parties to ensure greater loan resilience. The revised agreement includes robust loan amendments as well as more than $100 million of new equity.
The U.S. Government’s stake in the project delivers on President Trump’s agenda to better steward taxpayer dollars, and ensures the project will go forward, spurring the creation of manufacturing jobs and securing our nation’s access to the largest confirmed lithium deposit in North America.
“Despite having some of the largest deposits, the United States produces less than 1% percent of the global supply of lithium. Thanks to President Trump’s bold leadership, American lithium production is going to skyrocket,” U.S. Energy Secretary Chris Wright said. “Today’s announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars. President Trump promised to do both and he is delivering.”
LPO and LAC entered into a financial loan agreement in October 2024. The new terms of the deal will help finance the construction of facilities for manufacturing lithium carbonate at Thacker Pass. Once fully operational, the facility is expected to produce approximately 40,000 tonnes per year of battery-grade lithium carbonate for use in lithium-ion batteries, helping ensure the Trump Administration’s priority of onshoring U.S. supply chains will be realized.
Background:
LPO utilizes a variety of measures to protect taxpayers. Warrants are one of the terms, among many, that LPO negotiates with its borrowers as an option to exercise. This practice has been used in LPO loans, including to Tesla in 2010.
DOE is conducting a thorough review of every applicant and borrower to ensure every single taxpayer dollar is being used to advance the best interest of the American people.
###
