The U.S. Department of Energy (DOE) announced it will take a 5% ownership stake in Lithium Americas Corp., a $1.5 billion mining company developing the Thacker Pass lithium project in Nevada. The move follows speculation of a government takeover and continues the Trump administration’s trend of investing in industries deemed critical to national security.
Lithium Americas’ stock has surged more than 130% over the past week following reports of the deal. CEO Jonathan Evans said the administration’s support would help advance the “vital world-class project.” The Thacker Pass site, located on an extinct supervolcano in Humboldt County, is considered the largest known lithium deposit in the world.
The agreement, still preliminary, stems from a $2.26 billion federal loan. The DOE’s stake equates to about $435 million and extends to the company’s joint venture with General Motors. GM executive Shilpan Amin said the project will reduce U.S. reliance on imported lithium and strengthen supply chains for defense, aerospace, and automotive industries.
Partial federal ownership of corporations has become more common under Trump’s second term, with prior investments in Intel and MP Materials. Administration officials argue the investments are necessary to counter dependence on China for raw materials.
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