US goverment takes minority stake in Lithium Americas
WASHINGTON
The U.S. government is taking a minority stake in Lithium Americas, a company that is developing one of the world’s largest lithium mines in northern Nevada.
The Department of Energy will take a 5 percent equity stake in the miner, which is based in Vancouver. It will also take a 5 percent stake in the Thacker Pass lithium mining project, a joint venture with General Motors .
Thacker Pass is considered crucial in reducing U.S. reliance on China for lithium, a critical material used to produce the high tech batteries used in cell phones, electric vehicles and renewable energy.
Both Republicans and Democrats support the project and narrowing the production gap. China is the world’s largest lithium processor.
U.S. Energy Secretary Chris Wright said in a statement that the deal with Lithium Americas “helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars.”
Thacker Pass is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year in its first phase, enough to help power 800,000 EVs.
The equity stake in Lithium Americas is the latest example of the direct intervention by the Trump administration with private companies. The government is getting a 10 percent stake in Intel through the conversion of billions in previously granted government funds and pledges. The administration spent $400 million of taxpayer money in July on MP Materials stock to make the U.S government the biggest owner in the Las Vegas rare earths miner.
Trump also made a deal with Nvidia and AMD to give the U.S. government a 15% cut of revenue from selling certain chips to China.
