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Released September 25, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Lithium Americas' (Vancouver, British Columbia) Thacker Pass lithium mine in Nevada was given the green light to proceed by the U.S. Bureau of Land Management in 2021, under the first administration of U.S. President Donald Trump. In 2024, the Biden-era Department of Energy (DOE) approved a $2.26 billion loan for the nearly $3 billion project. However, a renegotiation of the loan's terms has reportedly prompted the government to obtain a stake in the Canadian mining company.
As Lithium Americas and its partner in the mine, General Motors Company (Detroit, Michigan), which holds a 38% stake in Thacker Pass, prepared to take the first draw on the DOE's loan, the White House and mine developers ended up back at the negotiating table, and as first reported by Reuters, the feds are seeking a stake of up to 10% in the Canadian mining company, although sources say the percentage will probably be lower.
The Washington Free Beacon first reported that the renegotiations were prompted by the government's concerns about Lithium Americas' ability to repay the loan due to low lithium prices caused by Chinese competition.
The opening for the government's proposal for an equity stake in the mining company came as Lithium Americas and GM sought to alter when a portion of the loan's principal would be repaid, although this would not affect the overall payment timeline or amount of interest paid. U.S. news organization Axios quotes an unnamed White House source as saying, "In exchange for their minor modification, our minor modification was essentially for the administration to have some equity in the deal to create a cash buffer and eliminate some risk for taxpayers ... We want some equity on behalf of taxpayers," although the news agency provides no context of who, what, where, why and how this quote was obtained.
The government is reportedly seeking to change GM's role in the mine as well. GM acquired its 38% stake in the mine last year, after agreeing to invest $625 million in its development. The company has the right to purchase up to 100% of the lithium produced from the first phase of construction for 20 years, and up to 38% of the offtake from Phase 2, also for 20 years. Another news agency, Bloomberg, reported that Trump officials were pushing GM to sign a binding offtake agreement for the mine's production, rather than simply have first refusal on the metal. The mine is expected to yield 40,000 tons of lithium carbonate per year after Phase 1 is complete, easily making it the largest lithium mine in North America and one of the world's largest sources of lithium. Construction of Phase 1 is expected to be finished in 2027, and production will begin in 2028. Phase 2 is expected to be completed five years later and will double production to 80,000 tons per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
Whether signing a binding offtake agreement is in GM's best interest is uncertain. With the administration's removal of the $7,500 electric vehicle (EV) consumer tax credit coming into effect next week, U.S. sales of EVs are expected to continue rising, but at a slower rate than previously expected. In addition, the administration blocked billions of dollars allocated to establishing EV-charging stations, although it was later forced to release the funds after being sued by a coalition of states. Showing a clear lack of support for EV adoption, the government's request for GM to lock into a contract in the midst of a decreased growth outlook for EV use in the U.S. may be a bit too much to ask of the company.
GM has the resources to consume substantial amounts of lithium should the market remain in a position of strength. Industrial Info is tracking three operational lithium-ion battery plants owned solely by GM or as part of its Ultium Cells joint venture with LG Energy Solution (Seoul, South Korea). Subscribers to Industrial Info's GMI Industrial Manufacturing Plant Database can click here for the plant profiles. In addition, Ultium is expected to finish a grassroot plant this year that will produce 50 gigawatt-hours (GWh) of batteries per year in Michigan and is considering expanding its battery plant in Spring Hill, Tennessee. GM on its own is establishing a 30 GWh-per-year plant in Indiana at an estimated cost of $3.5 billion that is expected to be completed toward the end of 2027. Subscribers can learn more by viewing the related project reports.
This isn't the first time the current White House administration has pursued a stake in a metals and minerals company. In Nippon Steel's (Tokyo, Japan) acquisition of U.S. Steel (Pittsburgh, Pennsylvania) earlier this year, the U.S. government obtained a "golden share" in the U.S. steelmaker, giving it significant veto power over corporate decisions, in addition to having the right to select one member of the company's board. While Trump will wield this oversight for the remainder of his time in office, the government's power over the company will be transferred to the Treasury and Commerce departments when a new administration comes to power.
While the "golden share" in the steel company gives the government no equity stake, this is not the case for a deal that was negotiated the following month, in July, when the Department of Defense (DOD) took a 15% stake in rare earths miner MP Materials (Las Vegas, Nevada). The terms of the agreement allow the DOD to enter a 10-year agreement establishing a floor price of $110 per kilogram for MP Materials' neodymium-praseodymium oxide, a key ingredient for the manufacture of rare-earth magnets, which is what the government is interested in, as the cash injection is primarily aimed at helping construct MP's "10x" magnet plant, from which the government will purchase 100% of the plant's magnets for 10 years from its startup, which is expected in 2028. A site for the facility remains undetermined, however, although a site near its mine in Mountain Pass, California, is considered a strong possibility. Subscribers can click here to learn more about the project.
Subscribers to Industrial Info's GMI Database can click here to view reports for many of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
As Lithium Americas and its partner in the mine, General Motors Company (Detroit, Michigan), which holds a 38% stake in Thacker Pass, prepared to take the first draw on the DOE's loan, the White House and mine developers ended up back at the negotiating table, and as first reported by Reuters, the feds are seeking a stake of up to 10% in the Canadian mining company, although sources say the percentage will probably be lower.
The Washington Free Beacon first reported that the renegotiations were prompted by the government's concerns about Lithium Americas' ability to repay the loan due to low lithium prices caused by Chinese competition.
The opening for the government's proposal for an equity stake in the mining company came as Lithium Americas and GM sought to alter when a portion of the loan's principal would be repaid, although this would not affect the overall payment timeline or amount of interest paid. U.S. news organization Axios quotes an unnamed White House source as saying, "In exchange for their minor modification, our minor modification was essentially for the administration to have some equity in the deal to create a cash buffer and eliminate some risk for taxpayers ... We want some equity on behalf of taxpayers," although the news agency provides no context of who, what, where, why and how this quote was obtained.
The government is reportedly seeking to change GM's role in the mine as well. GM acquired its 38% stake in the mine last year, after agreeing to invest $625 million in its development. The company has the right to purchase up to 100% of the lithium produced from the first phase of construction for 20 years, and up to 38% of the offtake from Phase 2, also for 20 years. Another news agency, Bloomberg, reported that Trump officials were pushing GM to sign a binding offtake agreement for the mine's production, rather than simply have first refusal on the metal. The mine is expected to yield 40,000 tons of lithium carbonate per year after Phase 1 is complete, easily making it the largest lithium mine in North America and one of the world's largest sources of lithium. Construction of Phase 1 is expected to be finished in 2027, and production will begin in 2028. Phase 2 is expected to be completed five years later and will double production to 80,000 tons per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
Whether signing a binding offtake agreement is in GM's best interest is uncertain. With the administration's removal of the $7,500 electric vehicle (EV) consumer tax credit coming into effect next week, U.S. sales of EVs are expected to continue rising, but at a slower rate than previously expected. In addition, the administration blocked billions of dollars allocated to establishing EV-charging stations, although it was later forced to release the funds after being sued by a coalition of states. Showing a clear lack of support for EV adoption, the government's request for GM to lock into a contract in the midst of a decreased growth outlook for EV use in the U.S. may be a bit too much to ask of the company.
GM has the resources to consume substantial amounts of lithium should the market remain in a position of strength. Industrial Info is tracking three operational lithium-ion battery plants owned solely by GM or as part of its Ultium Cells joint venture with LG Energy Solution (Seoul, South Korea). Subscribers to Industrial Info's GMI Industrial Manufacturing Plant Database can click here for the plant profiles. In addition, Ultium is expected to finish a grassroot plant this year that will produce 50 gigawatt-hours (GWh) of batteries per year in Michigan and is considering expanding its battery plant in Spring Hill, Tennessee. GM on its own is establishing a 30 GWh-per-year plant in Indiana at an estimated cost of $3.5 billion that is expected to be completed toward the end of 2027. Subscribers can learn more by viewing the related project reports.
This isn't the first time the current White House administration has pursued a stake in a metals and minerals company. In Nippon Steel's (Tokyo, Japan) acquisition of U.S. Steel (Pittsburgh, Pennsylvania) earlier this year, the U.S. government obtained a "golden share" in the U.S. steelmaker, giving it significant veto power over corporate decisions, in addition to having the right to select one member of the company's board. While Trump will wield this oversight for the remainder of his time in office, the government's power over the company will be transferred to the Treasury and Commerce departments when a new administration comes to power.
While the "golden share" in the steel company gives the government no equity stake, this is not the case for a deal that was negotiated the following month, in July, when the Department of Defense (DOD) took a 15% stake in rare earths miner MP Materials (Las Vegas, Nevada). The terms of the agreement allow the DOD to enter a 10-year agreement establishing a floor price of $110 per kilogram for MP Materials' neodymium-praseodymium oxide, a key ingredient for the manufacture of rare-earth magnets, which is what the government is interested in, as the cash injection is primarily aimed at helping construct MP's "10x" magnet plant, from which the government will purchase 100% of the plant's magnets for 10 years from its startup, which is expected in 2028. A site for the facility remains undetermined, however, although a site near its mine in Mountain Pass, California, is considered a strong possibility. Subscribers can click here to learn more about the project.
Subscribers to Industrial Info's GMI Database can click here to view reports for many of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
