trump administration wants 10% stake in canadian lithium miner that sells to gm

Potential U.S. Government Stake in Lithium Mine

Despite frequently dismissing the energy transition as a “green new scam,” the Trump administration is exploring a substantial investment in what is projected to become the largest lithium mine in the Western Hemisphere.

Negotiations for Equity

As part of discussions to revise the repayment schedule for a $2.26 billion loan from the Department of Energy, the administration is seeking up to a 10% equity share in Lithium Americas. This company has attracted significant investment from General Motors (GM).

The initial report of these negotiations surfaced on Tuesday, as noted by Reuters. A White House representative stated that President Trump is a proponent of the project and desires both its success and a fair return for taxpayers. The official emphasized that financial assistance requires appropriate consideration.

Precedent for Government Investment

This potential move aligns with a recent trend of the U.S. government acquiring stakes in key companies. Similar negotiations have previously resulted in government ownership in Intel and MP Materials.

Thacker Pass Mine Development

Lithium Americas is currently developing the Thacker Pass mine located in Nevada. The initial phase of operation is anticipated to yield sufficient lithium for the production of up to 800,000 electric vehicles annually.

Project permitting was finalized during the latter part of President Trump’s first term. The loan itself was subsequently approved by the Department of Energy’s Loan Program Office under the Biden administration.

GM’s Investment and Production Rights

Last year, GM secured a 38% stake in Lithium Americas for $625 million. This investment also granted the automaker exclusive rights to purchase the entire output of the first production phase, along with a 20-year supply from the second phase.

This equates to enough lithium for approximately 1.6 million electric vehicles over the next two decades.

Potential Purchase Guarantees

Reports indicate that the Trump administration is requesting GM to guarantee these purchase commitments, even while simultaneously pursuing policies that aim to impede the automotive industry’s shift towards electric vehicles.

Note: A prior iteration of this article incorrectly identified Lithium Americas as a U.S.-based company. Its headquarters are located in Canada.