Wed Sep 24 17:47:06 UTC 2025: **News Article:**

**US Considers Stake in Canadian Lithium Miner to Secure Domestic Battery Supply Chain**

**Washington D.C.** – The Trump administration is reportedly considering taking up to a 10% stake in Lithium Americas, a Canadian-based lithium mining company, as part of a broader effort to bolster domestic production of critical minerals and reduce reliance on China. The move is connected to a potential $2.2 billion loan from the U.S. Department of Energy (DOE) for Lithium Americas’ Thacker Pass mining project in Nevada, the largest planned lithium mine in the Western Hemisphere.

Sources familiar with the matter told Reuters that the White House views the investment as a strategic move to secure access to lithium, a key component in electric vehicle batteries and other electronics. Lithium Americas confirmed they are in discussions with the DOE and General Motors, which already owns a 38% stake in the Thacker Pass project.

The proposed stake underscores the Trump administration’s increasing use of direct government ownership to influence strategic sectors. This follows recent moves to acquire stakes in chipmaker Intel and rare earths firm MP Materials. Analysts suggest that equity stakes are viewed as politically more palatable than tax increases and can help secure financing for crucial projects.

The Thacker Pass project, slated to begin production in 2028, is considered a vital step in establishing a domestic lithium supply chain. General Motors, a major investor in the project, currently holds the right to purchase all of the lithium produced in the first phase and a portion of the second phase for 20 years. However, the Trump administration is reportedly seeking guarantees that GM will actively buy the metal.

Shares of Lithium Americas surged following the news, with both Canadian and US-listed stocks experiencing significant gains. Analysts believe that government investment could mitigate project risk by including price guarantees, thereby safeguarding profitability even if lithium prices decline.

While the move is viewed positively by some as a way to ensure the long-term viability of strategically important projects, others caution that it could dilute the holdings of existing shareholders.

This potential investment in Lithium Americas marks a significant step in the US government’s strategy to secure a domestic supply of critical minerals and reduce dependence on foreign sources, particularly China, which dominates lithium refining.

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