In a bold move that underscores the escalating U.S. push for control over critical minerals, the Trump administration is negotiating for up to a 10% equity stake in Lithium Americas Corp., a Canadian mining company developing what could become America’s largest lithium mine. The stake is tied to renegotiations of a $2.26 billion federal loan from the Energy Department, originally approved under the Biden administration to fund the Thacker Pass project in Nevada. This development, first reported by Reuters, highlights Washington’s intensifying intervention in the electric vehicle supply chain amid geopolitical tensions with China, which dominates global lithium processing.

The Thacker Pass mine, located in Humboldt County, Nevada, is poised to produce enough lithium to support up to 1 million electric vehicles annually once operational. Lithium Americas has already secured a significant partnership with General Motors Co., which invested $650 million in the project in 2023 and holds rights to 100% of the mine’s initial output for a decade. GM’s involvement is crucial, as it aims to secure domestic lithium supplies for its EV batteries, reducing reliance on foreign sources. However, the Trump team’s demands go further, pushing for GM to relinquish some control over project elements, potentially transferring them to federal oversight, according to sources familiar with the talks.

Renegotiating Terms Amid National Security Concerns

The equity request stems from Lithium Americas’ recent ask for a minor extension on the loan repayment period, which opened the door for broader revisions. Administration officials view this as an opportunity to embed government influence in strategic industries, echoing Trump’s “America First” economic policies. As detailed in a TechCrunch report, the stake would give the U.S. a direct ownership slice in a vital resource, with lithium being essential for batteries in everything from EVs to renewable energy storage. This isn’t an isolated case; the White House has pursued similar equity plays in other critical sectors, aiming to counter China’s near-monopoly on rare earths and battery materials.

Market reaction was swift and dramatic. Shares of Lithium Americas surged as much as 95% in a single trading session following the news, closing at $8.32 after jumping nearly 90%, per CNBC coverage. Investors see the government’s involvement as a vote of confidence, potentially accelerating project timelines and providing financial stability. Yet, skeptics worry about the implications of state intervention in private enterprise, questioning whether it could deter foreign investment or complicate operations for companies like Lithium Americas, which is headquartered in Vancouver but lists on both the Toronto and New York stock exchanges.

Broader Implications for the EV Supply Chain

For General Motors, this renegotiation adds complexity to its EV ambitions. The Detroit automaker has positioned Thacker Pass as a cornerstone of its strategy to onshore battery production, with no revenue from the mine expected until 2028. GM’s initial deal included options for future phases, but federal demands could dilute its influence. As noted in a GM Authority analysis, this might force GM to recalibrate partnerships, especially as it competes with Tesla Inc. and Ford Motor Co. in the race for domestic mineral security.

The push also reflects broader national security priorities. Lithium is classified as a critical mineral by the U.S. Geological Survey, and the administration’s actions align with efforts to build resilient supply chains under the Inflation Reduction Act’s domestic sourcing requirements. Posts on X (formerly Twitter) from industry observers, such as those highlighting GM’s 2023 investment, underscore the excitement around U.S.-focused mining ventures, though they also note potential delays from regulatory hurdles.

Challenges and Future Outlook for Thacker Pass

Environmental and legal challenges have long plagued Thacker Pass, including lawsuits from Native American tribes and conservation groups over potential impacts on sacred sites and water resources. The project received its record of decision in 2021, but ongoing litigation could be influenced by federal equity involvement, potentially streamlining approvals under a pro-business administration. A Forbes piece emphasized how the stake request comes amid soaring global demand for lithium, projected to triple by 2030 due to EV adoption.

Industry insiders suggest this could set a precedent for future government-miner deals, blending public funding with ownership to safeguard strategic assets. For Lithium Americas, the equity infusion might provide capital relief, but at the cost of autonomy. As negotiations continue, the outcome will likely shape how the U.S. navigates its energy transition, balancing innovation with security in an increasingly contested global market for critical minerals.