The Trump administration is pressing for up to a 10 percent equity stake in Lithium Americas (TSX:LAC,NYSE:LAC) as it renegotiates the terms of a US$2.26 billion loan tied to the Thacker Pass project.
Two people familiar with the talks told Reuters on Tuesday (September 23) that the stake was proposed by the US government during recent discussions over adjustments to the loan’s repayment structure.
In response, Lithium Americas offered the government no-cost warrants equivalent to 5 to 10 percent of its common shares, along with funds to cover administrative costs tied to the changes. The company had requested changes to the amortization schedule, but not to the overall repayment timeline or interest owed.
The request marks the latest instance of the Trump administration intervening directly in strategic sectors.
The White House has previously pursued similar arrangements with Intel (NASDAQ:INTC), MP Materials (NYSE:MP) and other firms considered vital to national security. “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.”
Located about 25 miles south of Nevada’s border with Oregon, Lithium Americas says Thacker Pass is set to become the western hemisphere’s largest lithium source once fully operational. Phase 1 is designed to produce 40,000 metric tons of battery-grade lithium carbonate per year, enough for roughly 800,000 electric vehicles.
Full commercial output is scheduled for 2028, following the completion of the processing plant and mine infrastructure; construction is already underway, with more than 600 contractors on site.
The scale of production would dwarf current US lithium output. At present, the country produces fewer than 5,000 metric tons annually from Albemarle’s (NYSE:ALB) Silver Peak facility in Nevada.
By contrast, global leaders Australia and Chile dominate mining, while China exerts outsized control over refining, processing more than 75 percent of the world’s lithium into battery-ready material.
The project was approved in the closing days of Trump’s initial term and received final financing under the Biden administration in 2024, when the Department of Energy’s Loan Programs Office (LPO) closed the record US$2.26 billion loan.
General Motors (NYSE:GM), which invested US$625 million in Lithium Americas last year for a 38 percent stake, holds rights to purchase all of the mine’s Phase 1 lithium output and part of Phase 2 output for the next two decades.
Trump officials are now pressing for assurances that GM will uphold those commitments, and are also seeking to shift some project control away from the automaker and toward Washington, according to Reuters’ sources.
For its part, Lithium Americas has stayed measured in its comments.
“We respect the LPO’s decision to pursue a restructure and remain in active discussions with the (Department of Energy) and our partner, GM, and will provide an update at the appropriate time,” the company said.
The reports of a potential government stake ignited trading activity. Shares of Lithium Americas jumped more than 90 percent in New York on Wednesday (September 24), climbing from about US$3 to as much as US$6.12.
Lithium Americas performance, September 19 to 24, 2025.
Chart via Google Finance.
GM shares also ticked higher, up about 2.5 percent in early trading.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
