TLDR
- Trump administration seeks up to 10% equity stake in Lithium Americas while renegotiating $2.26 billion Energy Department loan
- LAC stock jumped over 80% in pre-market trading from $3 to $5.57 per share on Wednesday
- Thacker Pass mine in Nevada set to become Western Hemisphere’s largest lithium source when it opens in 2028
- General Motors holds 38% stake and has rights to buy all lithium from first phase production
- Government also pushing for GM to guarantee lithium purchases and transfer some project control to Washington
Lithium Americas stock rocketed over 80% in pre-market trading Wednesday after news broke that the Trump administration wants to take an equity stake in the mining company.
The federal government is seeking up to 10% ownership while renegotiating a $2.26 billion Energy Department loan for the company’s Thacker Pass lithium project in Nevada.
Shares jumped from around $3 to $5.57 in pre-market trading. The stock had closed Tuesday at $3.07.
“President Trump supports this project. He wants it to succeed and also be fair to taxpayers,” a White House official told Reuters. “But there’s no such thing as free money.”
The move follows similar government investments in Intel and MP Materials. The Trump administration is targeting companies it views as critical to national security.
Lithium Americas was scheduled to make its first loan draw earlier this month. However, Trump officials wanted to renegotiate terms over concerns about the company’s ability to repay.
Low lithium prices caused by Chinese overproduction sparked these repayment worries. The administration now wants guarantees and more control.
Thacker Pass Project Details
The Thacker Pass mine sits roughly 25 miles south of Nevada’s border with Oregon. Construction has been underway for nearly a year with over 600 contractors on site.
When it opens in 2028, Thacker Pass will become the Western Hemisphere’s largest lithium source. The first phase will produce 40,000 metric tons of battery-quality lithium carbonate per year.
This output could supply batteries for up to 800,000 electric vehicles annually. The $2.93 billion project was originally approved by Trump during his first term.
The Biden administration later closed the loan through the Department of Energy’s Loan Programs Office. The loan carries a 24-year term with interest rates tied to Treasury rates.
General Motors invested $625 million in the mine last year for a 38% stake. The automaker has rights to buy all lithium from the first phase and some from the second phase for 20 years.
Government Demands More Control
Trump officials are now pushing GM to guarantee its lithium purchases. They also want the automaker to give up control over parts of the project to Washington.
The government’s equity request came during recent discussions about the loan’s payment schedule. Lithium Americas wanted to shift when some principal would be repaid.
In response to the equity demands, Lithium Americas offered the government no-cost warrants worth 5% to 10% of its common shares this week.
The company also agreed to cover any fees from changing the payment schedule. These warrants would give the government ownership without paying upfront costs.
GM called the loan “a necessary part of the financing to commercialize this important national resource.” The automaker noted Trump “strongly supported” the mine previously.
“We’re confident in the project, which supports the administration’s goals,” a GM spokesperson said.
The U.S. currently produces less than 5,000 metric tons of lithium annually at an Albemarle facility in Nevada. China dominates global lithium processing, handling over 75% of the world’s lithium into battery-grade material.
Lithium Americas has a market value of roughly $750 million. The company declined to comment on ongoing negotiations but said it remains in active discussions with the Energy Department and GM.
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