Trump administration wants 10% stake in American lithium miner that sells to GM
News Summary
The Trump administration is reportedly seeking up to a 10% equity stake in Lithium Americas, a lithium mining company. This demand comes in exchange for renegotiating the repayment period of a $2.26 billion Department of Energy loan. General Motors is a significant investor in Lithium Americas, holding a 38% stake and securing 20 years of production from the Thacker Pass mine. A White House official stated that President Trump supports the project, aiming for its success and fairness to taxpayers. This move follows a pattern of the U.S. government acquiring stakes in companies like Intel and MP Materials. Despite the Trump administration's skepticism towards the electric vehicle transition, it is also reportedly asking GM to guarantee its purchase commitments.
Background
Lithium Americas is developing the Thacker Pass mine in Nevada, which is projected to become the largest lithium mine in the Western Hemisphere. President Trump approved the project's permit at the end of his first term, while the Department of Energy loan was awarded under President Biden's administration. GM acquired a 38% stake in Lithium Americas last year for $625 million. This deal granted GM the right to purchase the entirety of the first phase of production and 20 years of the second phase, sufficient for 1.6 million EVs over the next two decades.
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