The U.S. Department of Energy announced yesterday that the Trump administration is acquiring a 5 percent equity stake in Lithium Americas, in addition to another 5 percent involvement in the company’s joint lithium mining venture with General Motors in Nevada. The Thacker Pass mining site is projected to be the largest lithium producer in the Western Hemisphere when it begins operations in 2028.
Lithium is a vital element in batteries for electric vehicles, renewable energy storage, and rechargeable electronics. Both the Biden and Trump administrations have aimed to reduce U.S. dependency on foreign lithium imports. This latest announcement signals President Trump’s ongoing efforts to strengthen control over the nation’s supply chains for essential materials.
President Trump’s ongoing efforts to strengthen control over the nation’s supply chains for essential materials
Once operational, the Thacker Pass mine is expected to generate approximately 40,000 metric tons of lithium carbonate annually for battery manufacturing. In contrast, U.S. lithium production currently stands at under 5,000 metric tons. By way of comparison, China, which ranks third after Australia and Chile in lithium production, already produces around 40,000 metric tons each year.
Construction of the mine began in 2023, facing substantial resistance from local Native American tribes. Advocacy groups, including Human Rights Watch and the American Civil Liberties Union, have indicated that federal permitting for the mine infringed upon Indigenous rights, noting a failure to secure “free, prior, and informed consent” from the tribes involved. Local ranchers and environmental organizations have also expressed concerns over the mine’s potential effects on water resources and endangered species.
In October 2024, Lithium Americas arranged a $2.26 billion loan agreement with the Biden administration. The Department of Energy stated that the revised terms now incorporate over $100 million in equity financing. Energy Secretary Chris Wright commented on Bloomberg Television that U.S. involvement through equity stakes is crucial for the mine’s sustainability amid declining global lithium prices.
The Trump administration’s strategy of acquiring stakes in various companies has been consistent. In August, a 10 percent stake was taken in Intel. Earlier in July, MP Materials, recognized as the sole producer of rare earth minerals in the U.S., revealed that the Department of Defense would become the largest shareholder with a 15 percent share.
