Trump Administration Secures Equity Stake in Nevada Lithium Mine, Reshaping US Industrial Policy

WASHINGTON – The White House is moving forward with a landmark deal that grants the U.S. government a small equity stake in Lithium Americas, the Canadian company developing one of the world’s largest lithium mines in northern Nevada. This move, part of a restructured $2.3 billion federal loan from the Department of Energy, aims to accelerate the Thacker Pass project, crucial for domestic electric vehicle (EV) battery production.

The agreement marks the latest instance of President Donald Trump’s administration directly intervening in private enterprise, following similar equity acquisitions in Intel and MP Materials, and revenue-sharing deals with Nvidia and AMD. While the exact size of the U.S. stake in Vancouver-based Lithium Americas remains undisclosed, a White House official confirmed it would be “very small,” less than 10%, intended as a “cash buffer” for the company.

The Thacker Pass mine, located approximately 200 miles north of Reno, is projected to produce 40,000 metric tons of battery-quality lithium carbonate annually in its initial phase, enough to power 800,000 EVs. General Motors has already pledged over $900 million towards its development. This bipartisan-supported project, initially backed by the Biden administration, is seen as vital for establishing a resilient domestic supply chain for critical minerals and reducing reliance on foreign sources, particularly China.

However, the administration’s broader energy and climate policies present a complex backdrop. While boosting domestic lithium, President Trump recently reiterated his skepticism on climate change at the United Nations, labeling it a “scam.” Furthermore, a new tax law signed by Trump this summer is phasing out federal incentives for EV purchases by month-end, a move expected to further slow U.S. EV adoption, which has already seen a recent slowdown due to consumer concerns about infrastructure and affordability.

Despite ongoing environmental and tribal opposition to the mine, which borders a sacred Native American site, the government emphasizes the project’s importance for economic growth and domestic manufacturing. Lithium, beyond EVs, is essential for cell phones, electronics, glass, pharmaceuticals, and renewable energy storage.

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