US Plans 5% Stakes in Lithium Americas and Thacker Pass JV to Secure Domestic Lithium Supply

The U.S. Department of Energy (DOE) is set to acquire a 5% equity stake in both Lithium Americas (LAC) and its Thacker Pass lithium mine joint venture with General Motors (GM), a move aimed at securing domestic lithium supply critical for electric vehicle battery production. The Thacker Pass project in Nevada is one of the world's largest lithium deposits, expected to produce enough lithium carbonate annually to supply approximately 800,000 EVs, highlighting its strategic importance in the U.S. energy transition. This government investment accompanies a renegotiation of a $2.26 billion federal loan to support the project, signaling strong federal backing intended to de-risk the venture and ensure favorable financing and offtake terms. Following the announcement, Lithium Americas' shares surged significantly, reflecting investor confidence, with other lithium miners also experiencing rallies due to increased optimism about U.S. lithium production expansion. Analysts view the government's stake as a positive indicator for the project's financial viability, potentially including price guarantees to maintain profitability amid fluctuating lithium prices. The initiative is part of broader efforts to reduce U.S. dependence on foreign critical minerals and foster a domestic supply chain for the growing electric vehicle market.