The US government has agreed to acquire a stake in Lithium Americas Corp, according to Secretary of Energy Chris Wright. This investment will support the Canadian company as it progresses its Thacker Pass lithium project in Nevada. Lithium Americas is focused on advancing lithium projects, with a goal of becoming a major supplier to the electric vehicle battery market. The Thacker Pass project is poised to become a significant domestic source of lithium, a critical metal for batteries.
This move reflects the US government’s broader strategy to strengthen the domestic supply chain for critical minerals and reduce its dependence on China. The Trump administration has been actively pursuing initiatives to bolster domestic production of metals essential for defence, automotive manufacturing, and consumer electronics. Lithium Americas and its joint-venture partner, General Motors, have been in discussions with the Energy Department regarding a $US2.3 billion federal loan to fund the Thacker Pass project.
The potential government stake follows a previous investment in MP Materials Corp, where the Defence Department committed $US400 million to build a rare-earth magnet plant. These investments highlight the government’s commitment to securing domestic sources of critical materials.
News of the potential government stake has positively impacted Lithium Americas’ stock. The company’s US-listed shares have seen a significant increase this year, rising 92 per cent.
