Uncle Sam Weighs Investment in Canadian Lithium Miner

New York-listed shares of Lithium Americas essentially doubled on Wednesday, rising more than 95% to close at $6. The Vancouver-based mining firm, which is developing the massive Thacker Pass Lithium Mine in northern Nevada, had the White House to thank.

That’s because the Trump administration is eyeing a US government equity stake of up to 10% in the Canadian miner, as part of a renegotiated, $2.2 billion Department of Energy loan. The cross-border deal could ultimately provide fuel for one of America’s most iconic car manufacturers.

Battery Charge

As with its newly acquired stakes in chipmaker Intel and rare earths producer MP Materials, the US sees its investment in Lithium Americas as being in the national interest. America needs more lithium, and it aims to reduce its reliance on China, which accounts for over 70% of the world’s lithium refining.

The US produces roughly 5,000 metric tons per year from a single Nevada facility operated by Albemarle, compared with China’s estimated 41,000 metric tons in 2024. Lithium Americas’ Thacker Pass mine is expected to flip that imbalance like a pancake, however, churning out 40,000 tons worth of battery-quality material annually during its first phase, starting in late 2027. That’s enough for roughly 800,000 electric cars every year, particularly great news for the mine’s second-biggest investor:

• General Motors took a 38% stake in Thacker Pass last year for $625 million and has the right to buy all the lithium from its first phase for 20 years, plus a 38% share of the next 20-year phase.
• Reuters reported that the Trump administration, as part of its negotiations, is trying to obtain a guarantee that GM will buy the material in order to shore up its investment.

Rev Up: GM has a growing use for lithium: It sold a record 21,000 electric vehicles in the US in August and is the No. 2 seller of EVs in the country behind Tesla. But executives have acknowledged EV sales will likely slow in the short to medium term as a result of US policies that will end tax credits on September 30. On the other hand, Cox Automotive analysts wrote earlier this week that they believe the US share of EVs can still rise to 25% by 2030 from under 10% this year. In which case, GM will likely be happy to mine its own business.