A Lithium Americas worker processes lithium at the company’s Reno, Nevada R&D lab.
Shares of Lithium Americas soared nearly 95% on Wednesday after news that the Trump administration is considering taking an equity stake in the Canadian mining company. The development comes as the firm renegotiates a multibillion-dollar loan with the U.S. Department of Energy for its Nevada project.
The Vancouver-based company saw its stock climb from $3.07 to close at $6.01, after hitting an intraday high of $6.23. The sharp rally pushed Lithium Americas’ market value to around $1.5 billion.
White House Push for Direct Stakes
According to officials, the White House proposed the potential stake during ongoing discussions over a $2.2 billion loan tied to the Thacker Pass mine in northern Nevada. Media reports noted that the Department of Energy and Lithium Americas have been in talks to restructure the financing terms after the company missed requirements for its first disbursement.
The proposal marks the latest move by the U.S. government to strengthen control over mineral supply chains crucial to electric vehicle production. It would also represent the first direct equity investment in a Canadian miner.
Earlier this year, the Department of Defense secured a 15% equity position in U.S.-based MP Materials, a rare earth producer. Shares of MP Materials more than doubled following that deal.
A Strategic Lithium Source
Thacker Pass is projected to become one of the largest lithium resources in North America. The site is being developed through a joint venture between Lithium Americas and General Motors.
Lithium Americas holds a 62% operating stake, while GM owns 38% and has committed to purchase lithium once production begins. The mine’s first phase is scheduled to commence in late 2027.
Lithium is a vital component for batteries that power electric vehicles, making the project strategically important as global competition intensifies.
Loan Talks and Risk Sharing
Sources said Lithium Americas and GM requested adjustments to the repayment schedule of the Energy Department loan. They sought to push back certain payments into later years, sparking the administration’s proposal for a small equity stake.
“If repayments are delayed, a modest equity position would act as a cash buffer,” an administration official explained. “It helps reduce risk for taxpayers while keeping the project on track.”
While negotiations are ongoing, officials stressed that the administration views Thacker Pass as a priority project. Any deal may also require clearance from Canadian authorities, given the company’s incorporation and jurisdiction.
Company Response
Lithium Americas confirmed on Wednesday that discussions are underway with both the Energy Department and GM regarding the revised loan terms. GM declined to comment.
In April, Interior Secretary Doug Burgum had hinted at the administration’s interest in taking equity positions in mining firms as a safeguard against state-supported competitors, particularly from China.
With growing pressure to secure critical minerals domestically, the government’s potential stake in Lithium Americas signals a new phase in U.S. resource strategy — one where ownership becomes as important as access.
