U.S. Government to Acquire Stake in Canadian Lithium Mine Project

Fri Oct 10 2025 12:13:55 GMT+0300 (Eastern European Summer Time)

The Biden administration moves forward with a potential equity stake in Lithium Americas, aiding the development of a critical lithium mine in Nevada, aimed at boosting domestic supply for electric vehicle batteries.

The Biden administration is set to acquire a small stake in Canadian firm Lithium Americas, supporting the Thacker Pass lithium mine project. The mine, crucial for the domestic supply of lithium used in electric vehicle batteries, is backed by General Motors. With a focus on reducing reliance on foreign lithium, the U.S. aims to strengthen its domestic manufacturing of critical minerals.

The White House is progressing with a deal that would enable the U.S. government to secure a small equity stake in a Canadian company, Lithium Americas, which is developing one of the world's largest lithium mines in northern Nevada. The Department of Energy and Lithium Americas have agreed on modifications to a $2.3 billion federal loan to expedite the project, which focuses on extracting lithium, a crucial element for electric vehicle batteries.

General Motors has made a significant commitment of over $900 million towards the development of the Thacker Pass project, which possesses enough lithium to manufacture 1 million electric vehicles yearly. The anticipated equity stake is reportedly less than 10% and is deemed a 'cash buffer' for Lithium Americas, according to a White House official who preferred to remain anonymous.

This project represents a continuation of the government's involvement in private enterprises, a strategy that has also seen the U.S. secure a stake in Intel and major investments in rare earths mining. The White House affirmed its belief in the importance of critical minerals in revitalizing the U.S. economy and supporting domestic manufacturing.

Thacker Pass aims to initially produce 40,000 metric tons of battery-quality lithium carbonate annually, sufficient to power approximately 800,000 electric vehicles. The administration views the mine as essential for establishing a domestic supply chain for electric vehicle batteries, especially in light of bipartisan support for reducing dependence on Chinese lithium processing.

Despite environmental opposition, the Biden administration's backing of the mine aligns with a broader strategy to address climate change and enhance the domestic production of critical mineral resources. The timing comes as electric vehicle sales slow amid concerns over infrastructure and affordability in the EV market.

Environmental groups and Native American tribes have raised significant concerns regarding the mine's proximity to sacred lands, highlighting the ongoing tensions surrounding the project. In light of the challenges facing electric vehicle adoption, the government is keen to galvanize support for the lithium mining initiative, aimed at powering the future of electric transport.