Department of Energy to Take Stakes in Lithium Americas and Its Nevada Mine

Energy Secretary Chris Wright announced on Oct. 1 that the Department of Energy (DOE) is taking a 5 percent stake in Lithium Americas Corp. and another 5 percent stake in the company’s lithium mine under construction in the Nevada desert. These moves are part of the federal government’s efforts to onshore critical minerals.

As of 1:40 p.m. EDT on Oct. 1, shares of Lithium Americas were up by 25.03 percent.

The stock rose by 100 percent on Sept. 24 when news broke that the DOE was in talks to take an equity stake in Lithium Americas.

“We want to reduce U.S. dependence on imports of critical materials,” Wright said in response to a question from The Epoch Times at the time. “Lithium is not top of that list, but it’s on that list. We don’t produce meaningful lithium in the United States today.”

The Thacker Pass Lithium Mine in Humboldt County, Nevada, near the Oregon border is being developed as a joint venture between Lithium Americas and General Motors (GM). It is the largest domestic source of lithium in North America and is expected to produce enough lithium carbonate to power about 800,000 electric vehicles annually.

Currently, China dominates production of critical battery minerals such as lithium, cobalt, and graphite, accounting for 90 percent of graphite production and more than two-thirds of lithium and cobalt production.

The U.S. government’s stake in the Thacker Pass project ensures that the project will continue to move forward, according to the DOE. The mine has been hotly contested by Nevada’s Native American tribal groups, as well as by local ranchers concerned over water rights.

“Despite having some of the largest deposits, the United States produces less than 1 percent of the global supply of lithium,” Wright said. “[The Oct. 1] announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars.”

Lithium Americas in March 2024 secured a $2.26 billion loan (subsequently revised downward to $2.23 billion) from the DOE’s Loan Programs Office. Under the agreement, the DOE will defer $182 million in debt service over the first five years of the loan in exchange for 10 percent equity in the company and the Thacker Pass Mine. The DOE agreed to advance Lithium Americas a first draw of $435 million, as well as provide the company with an additional $120 million in new equity.

“We greatly appreciate the support of the administration, General Motors and our partners in advancing this vital world-class project,” said Jonathan Evans, president and CEO of Lithium Americas.

“Together, we are onshoring large-scale U.S. lithium production, strengthening America’s supply chain, creating exceptional jobs and enhancing our long-term energy security and prosperity.”

GM holds a 38 percent stake in the Thacker Pass Lithium Mine as a joint venture partner after agreeing in 2024 to provide Lithium Americas with $625 million in cash and credit. GM will purchase up to 100 percent of the lithium carbonate produced during the mine’s first 20 years of production and up to 38 percent of production over the following 20 years.

Thacker Pass is expected to produce 40,000 tons of lithium carbonate per year, eventually ramping up to 80,000 tons per year. Construction of the mine will provide nearly 2,000 direct jobs, according to Lithium Americas, with production slated for late 2026.

Lithium Americas is currently permitted for a 40-year mining operation at Thacker Pass, which has a projected life of 85 years. Lithium Americas received a Record of Decision in January 2021 from the Bureau of Land Management and state permits from the Nevada Division of Environmental Protection in February 2022. Construction work commenced in March 2023.

Andrew Moran contributed to this report.