US government takes equity stake in one of the world’s largest lithium mines

Donald Trump’s administration is taking a 5 percent equity ownership of mining company Lithium Americas, on top of another 5 percent stake in the company’s joint mining project with GM in Nevada, the Department of Energy announced yesterday. The mine at Thacker Pass is expected to become the largest producer of lithium in the Western Hemisphere once it opens in 2028.

Lithium is a crucial component in batteries used for electric vehicles, wind and solar energy storage, and rechargeable devices of all kinds. Both the Biden and Trump administrations have sought to wean the US off foreign imports of lithium. This announcement is the latest step President Trump has taken to assert more control over domestic supply chains for key materials.

The Thacker Pass mine is supposed to produce around 40,000 metric tons of lithium carbonate annually for batteries once it’s fully operational. US production of lithium is currently under 5,000 metric tons. For comparison, China — the third-biggest lithium producer after Australia and Chile — already produces 40,000 metric tons annually.

The mine has been under construction since 2023, following fierce opposition from nearby Native American tribes. Human Rights Watch and the American Civil Liberties Union found that the federal government’s permitting of the mine violated Indigenous peoples’ rights in a February 2025 report, alleging it failed to obtain “free, prior, and informed consent” from affected tribes. Ranchers and environmental groups concerned about the mine’s impact on local water sources and endangered species have also opposed the project.

Lithium Americas secured a $2.26 billion loan agreement with the Biden administration in October 2024. In restructuring the loan, the Department of Energy says the revised agreement includes more than $100 million of new equity. Energy Secretary Chris Wright told Bloomberg Television that the US needed to take an equity stake to ensure the mine’s viability as lithium prices drop worldwide.