U.S. Government Takes Small Stake in Canadian Lithium Project

Mon Oct 20 2025 23:04:43 GMT+0300 (Eastern European Summer Time)

In a strategic move to boost domestic lithium production, the White House has agreed to a deal that allows the U.S. to take a minor equity stake in Lithium Americas, the firm behind the Thacker Pass lithium project in Nevada.

The Biden administration is advancing a deal to acquire a small equity stake in Lithium Americas, which is developing one of the largest lithium mines in northern Nevada. The initiative, supported by General Motors, aims to increase domestic lithium production crucial for electric vehicle batteries, lowering reliance on foreign sources and meeting climate goals. This collaborative move between bipartisan leadership reflects the growing importance of critical minerals in the economy.

The Biden administration is moving forward with a deal allowing the U.S. government to take a small equity stake in Lithium Americas, the company behind the Thacker Pass lithium project in northern Nevada. This mine is expected to play a vital role in bolstering the domestic supply of lithium, a key component in electric vehicle (EV) batteries.

The U.S. Department of Energy has adjusted a previously approved loan to the company, facilitating the project’s progress, which General Motors has also heavily invested in. The partnership and federal support signal a concerted effort to reduce reliance on foreign lithium supply, particularly from China.

“Critical minerals like lithium are essential for the U.S. economy and the growth of domestic manufacturing,” said a White House official.

Despite the positive outlook, the project hasn't been without controversy. Opponents include environmentalists and Native American tribes who cite cultural significance and environmental concerns regarding the site. However, both Republicans and Democrats have found common ground, recognizing the urgency of establishing a robust domestic electric vehicle battery supply chain.

Thacker Pass is slated to produce enough lithium for about 800,000 EVs per year, marking a significant step toward achieving climate goals. It also represents a shift in priorities, as both current and previous administrations see the necessity of investing in renewable resources to drive economic growth.