The U.S. Department of Energy has agreed to take a 5% equity stake in Canadian miner Lithium Americas Corp. and a separate 5% stake in its Thacker Pass lithium project in Nevada. The deal, finalized on September 30, 2025, restructures a $2.26 billion federal loan to support domestic production of the key battery metal.
This move helps Lithium Americas and partner, General Motors, defer $182 million in loan repayments over five years. In exchange, the government gets warrants to buy shares at 1 cent each. The changes address low lithium prices from Chinese overproduction, which have strained project finances.
The agreement marks the first U.S. government equity position in a Canadian-based miner for a domestic project. It aligns with efforts to reduce reliance on foreign supplies. China controls much of global lithium refining. The U.S. produces a small share.
Stakes Shift for Lithium Americas and Partners
Lithium Americas, based in Vancouver, trades on the New York Stock Exchange under LAC. General Motors holds a 38% interest in Thacker Pass after investing $625 million in 2024. GM also has a 20-year offtake deal for the output.
The Thacker Pass site holds the largest known U.S. lithium deposit. It could supply material for up to 1 million electric vehicles per year. Phase one operations are set to begin in late 2027. Full production follows in 2028.
Energy Secretary Chris Wright said the stake protects taxpayers and advances the project. “This ensures Thacker Pass moves forward,” Wright told Bloomberg TV. The deal includes an exit plan for the government’s investment.
Market Response to DOE Loan Changes
Lithium Americas shares jumped 32% to $7.51 on October 1, 2025, boosting market value above $1.7 billion. The surge followed a 95% gain the prior week on stake rumors.
Analysts see the move as de-risking the project. It could include future price guarantees. This helps in a market hit by oversupply. Lithium prices fell over 80% since 2022 due to excess Chinese output.
The deal echoes a July 2025 agreement where DOE took a 15% stake in rare earth miner MP Materials. Both support critical minerals supply chains under the Trump administration.
Timeline of Thacker Pass Developments
The loan was first approved in 2024 under Biden. Lithium Americas and GM sought changes in mid-2025. Negotiations wrapped on September 30, 2025.
Construction continues at the Nevada site. First lithium output is targeted for 2027. The project faces no major opposition in current reports.
Lithium Americas CEO Jonathan Evans called the support key to advancing Thacker Pass. No credible counterpoints emerged in reviews. Some environmental groups raised past concerns, but permits stand.
Next Steps for Project and Policy
The initial $435 million loan draw is expected soon. Full loan closure follows in 2026. Production ramps to 40,000 tons annually by 2028.
Policy watchers eye more equity deals in minerals. The administration pushes domestic chains. No firm dates for similar investments.
