US Takes Historic Stake in World’s Largest Lithium Mine
▼ Summary
– The Trump administration is taking a 5% equity stake in Lithium Americas and another 5% stake in its joint mining project with GM in Nevada’s Thacker Pass mine.
– The Thacker Pass mine is projected to become the largest lithium producer in the Western Hemisphere, producing 40,000 metric tons annually once operational in 2028.
– Lithium is essential for electric vehicle batteries and renewable energy storage, with both Biden and Trump administrations seeking to reduce US reliance on foreign imports.
– The mine faces opposition from Native American tribes, ranchers, and environmental groups over Indigenous rights violations and impacts on water sources and endangered species.
– This follows similar government equity investments in companies like Intel and MP Materials to secure domestic supply chains for critical materials.
The United States government has acquired a significant financial interest in the company developing the Thacker Pass lithium mine in Nevada, marking a major strategic move to bolster domestic production of this essential battery metal. Through the Department of Energy, the administration has secured a 5 percent equity ownership in Lithium Americas, in addition to another 5 percent stake in the firm’s joint mining venture with General Motors. Once operational in 2028, the Thacker Pass site is projected to become the single largest source of lithium in the entire Western Hemisphere.
Lithium serves as the fundamental building block for the batteries that power electric vehicles, store energy from wind and solar installations, and run countless rechargeable consumer electronics. Successive presidential administrations have prioritized reducing American dependence on foreign lithium imports. This recent equity acquisition represents the latest action by the current administration to exert greater influence over the domestic supply chains for critical materials.
When the Thacker Pass facility reaches full production capacity, it is expected to yield approximately 40,000 metric tons of lithium carbonate every year. This output stands in stark contrast to the United States’ current annual lithium production, which sits below 5,000 metric tons. To provide context, China, ranked as the world’s third-largest lithium producer behind Australia and Chile, already manufactures about 40,000 metric tons per year.
Construction on the massive mining project commenced in 2023, but not without facing determined resistance. Nearby Native American tribes have voiced strong objections to the development. A report released in February 2025 by Human Rights Watch and the American Civil Liberties Union concluded that the federal government’s approval process for the mine violated Indigenous rights. The report specifically alleged that regulators failed to secure “free, prior, and informed consent” from the tribes whose lands and cultural resources are affected. Ranchers and various environmental organizations have also joined the opposition, raising serious concerns about the project’s potential impact on local water supplies and protected wildlife species.
This new equity arrangement follows a substantial $2.26 billion loan agreement that Lithium Americas finalized with the previous administration in October 2024. As part of restructuring that loan, the Department of Energy clarified that the revised terms include over $100 million in fresh equity investment. Energy Secretary Chris Wright explained to Bloomberg Television that the government determined taking an ownership share was necessary to guarantee the mine’s financial viability, especially as global lithium prices continue to experience a downturn.
The move to secure stakes in critical mineral companies is part of a broader pattern. In August, the administration took a 10 percent ownership position in the semiconductor giant Intel. Just one month prior, MP Materials, the sole domestic producer of rare earth minerals, announced that the U.S. Department of Defense would become its largest shareholder by acquiring a 15 percent stake in the company.
(Source: The Verge)
