Trump Administration Seeks 10% Equity in Lithium Americas, Pressuring GM on EV Supply
Trump Administration Seeks 10% Equity in Lithium Americas, Pressuring GM on EV Supply
The Trump administration is reportedly pursuing a significant equity stake in Lithium Americas, the company behind what is projected to be the largest lithium mine in the Western Hemisphere. This move comes as the administration seeks to renegotiate the repayment terms of a substantial $2.26 billion Department of Energy (DOE) loan previously awarded to the company.
Sources indicate that the administration is asking for as much as 10% equity in Lithium Americas, a company where General Motors (GM) holds a major investment. A White House official, speaking on the condition of anonymity, stated, “President Trump supports this project. He wants it to succeed and also be fair to taxpayers. But there’s no such thing as free money.” This demand follows a pattern of the U.S. government acquiring stakes in strategic industries, including Intel and MP Materials.
Lithium Americas is currently developing the Thacker Pass mine in Nevada, a project initially permitted during President Trump’s first term. The mine’s first phase is expected to produce enough lithium annually for 800,000 electric vehicles. GM previously invested $625 million for a 38% stake in Lithium Americas, securing the right to purchase the entirety of the first phase’s production and 20 years of the second phase, totaling enough lithium for 1.6 million EVs over two decades. The administration is also reportedly urging GM to guarantee these critical purchases, despite its broader skepticism regarding the energy transition and electric vehicle adoption.
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