Published On 1 Oct 2025
One of the largest lithium mines in the world is being developed in northern Nevada by the US government, Lithium Americas, a company that is controlling a minority stake there.
The miner, which has a base in Vancouver, will have a 5 percent equity stake in the Department of Energy. Additionally, it will own a 5 percent stake in General Motors’ joint venture Thacker Pass lithium mining project.
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The use of high-tech batteries used in cellphones, electric vehicles, and renewable energy, such as those found in China, is regarded as crucial in reducing the US’reliance on China. Republicans and Democrats both support the project, which will close the production gap. The largest lithium processor in the world is located in China.
The agreement with Lithium Americas “helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars,” according to US Energy Secretary Chris Wright in a statement.
In its initial phase, Thacker Pass is expected to produce 40 000 tonnes of battery-quality lithium carbonate, enough to power 800 000 electric vehicles.
The administration’s latest direct intervention in private companies is President Donald Trump’s equity stake in Lithium Americas. Through the conversion of billions in previously granted government funds and pledges, the government will acquire a 10% stake in Intel. To become the largest owner of the Las Vegas-based rare earths miner, the administration spent $400 million on MP Materials stock in July after the administration spent $400 million on it. Trump also reached a deal with Nvidia and AMD to give the US government a 15% discount on sales of certain chips to China.
Lithium Americas announced on Wednesday that it had reached a non-binding contract in principle with the Department of Energy to make the $435 million loan’s first draw possible. The department has consented to postpone the loan’s first five years’ $ 178 million debt service.
“Massive opportunity”
Late last month, the White House and Canada’s Lithium Americas appeared to be moving forward with the agreement as both parties discussed changes to a $2.3 billion federal loan that might allow the project to advance in the extraction of the silver-white metal used in electric vehicle batteries. Thacker Pass, which contains enough lithium to produce 1 million electric vehicles annually, has received a pledge of more than $900 million.
The US has a “massive opportunity” to cut its reliance on China and other foreign adversaries, according to analyst Dan Ives of Wedbush.
The US produced less than 1% of the world’s lithium supply, he wrote, “but this deal helps reduce dependence on foreign adversaries for crucial minerals, strengthens domestic supply chains, and ensures better stewardship of American taxpayer dollars with lithium production projected to increase exponentially over the coming years.”
Source: Aljazeera
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