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- US government to take 5% equity stake in Lithium Americas’ joint venture with General Motors
- move tied to $2.26 billion DOE loan and support for the Thacker Pass project in Nevada, one of the largest lithium deposits in the US
- Washington shifts from lending to direct ownership, following its 15% stake in MP Materials
- Strategy aimed at securing domestic lithium supply for EV and battery production, reducing dependence on China
The US government will take a 5% equity stake in Lithium Americas’ joint venture with General Motors, tightening its grip on strategic minerals and marking a deeper move into ownership of America’s lithium supply chain.
Why Lithium Americas?
Lithium Americas’ Thacker Pass project in Nevada is the largest known lithium resource in the US, holding an estimated 16.1 million tonnes of lithium carbonate equivalent (LCE). The project is forecast to produce 40,000 tonnes of LCE per year in Phase 1, doubling in Phase 2.
GM has already committed $650 million to develop Thacker Pass, securing lithium supply for its Ultium battery plants. The US stake, structured alongside a $2.26 billion DOE loan package, gives Washington direct leverage in ensuring the project comes online as scheduled.
What is the strategic context of the investment
The investment comes as Washington pushes to reduce reliance on China, which controls over 60% of global lithium refining capacity and dominates battery supply chains.
By taking equity stakes, the U.S. is moving from passive financier to active shareholder in critical mineral projects. The approach mirrors the July 2025 deal where the government bought a 15% stake in MP Materials, the only US rare earth miner.
Outlook
With these new investments, Washington now holds direct stakes in both a US rare earth mine and its most advanced lithium project. It signals a structural shift: the US government is not just subsidizing critical minerals — it is buying into them.
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