U.S. Government to Acquire Stake in Major Lithium Mine Development in Nevada

Fri Oct 03 2025 02:49:24 GMT+0300 (Eastern European Summer Time)

The Biden administration is advancing a deal to invest in a Canadian company, Lithium Americas, aimed at developing one of the largest lithium mines in the world. This initiative is viewed as vital for strengthening domestic production of critical minerals essential for electric vehicle batteries.

The U.S. government is proceeding with a deal to take a small equity stake in Lithium Americas for the Thacker Pass lithium mine, which is significant for the production of electric vehicle batteries. This partnership reflects bipartisan support for boosting domestic lithium supply and reducing reliance on foreign sources, particularly from China. However, local environmental concerns and tribal disputes raise significant challenges for the project's future.

WASHINGTON (AP) — The White House is moving forward with a deal that would enable the U.S. government to acquire a minor equity stake in Lithium Americas, a Canadian firm developing one of the largest lithium mines in the world, located in northern Nevada.

Recent modifications to a $2.3 billion federal loan between the Department of Energy and Lithium Americas could facilitate the advancement of the Thacker Pass lithium mine and processing plant, which is crucial for extracting lithium, a key component in electric vehicle batteries. General Motors has already committed over $900 million to the project, which has the potential to produce enough lithium to support the production of 1 million electric vehicles annually.

The proposed equity stake in Lithium Americas marks a strategic move by the Biden administration to directly involve itself in the private sector, similar to prior actions taken by former President Donald Trump's administration, which included government investments in Intel and MP Materials.

The size of the U.S. stake is expected to be small—less than 10%—and mainly aimed at providing a cash buffer to aid the company. As part of the ongoing negotiations, the Lithium Americas corporation has requested adjustments to the terms of the federal loan initially approved by the Biden administration last year.

“Critical minerals like lithium are very important to boost the U.S. economy and restore domestic manufacturing,” stated a White House official. “We’re trying to do this in a way that is fair to the taxpayers. We don’t believe in free money.”

The Thacker Pass mine is pivotal in developing a domestic supply chain for batteries used in electric vehicles and electronics, yielding 40,000 metric tons of battery-quality lithium carbonate annually, sufficient for approximately 800,000 EVs.

This initiative has garnered bipartisan support, recognized as a strategic asset in reducing dependency on China, the world’s dominant lithium processor. However, local opposition including environmental groups and Indigenous leaders has arisen over concerns related to the site's historical significance and potential environmental impacts.

As Congress adjusts tax legislation affecting EV incentives, ensuring consumer interest and supporting the adoption of electric vehicles becomes increasingly complex. The completion of this lithium mining project is seen as a cornerstone to achieving sustainable energy goals and meeting the rising demand for EVs.