Lithium Americas stock doubles as Trump eyes equity stake in $2.2 billion loan deal
Shares of Lithium Americas surged Wednesday after reports that the Trump administration is seeking an equity stake in the Canadian mining company as part of a renegotiated loan deal for its Nevada lithium project.
The Vancouver-based miner confirmed it is in talks with the U.S. Department of Energy (DOE) and partner General Motors over the terms of a $2.2 billion DOE loan for the Thacker Pass mine. According to officials, the White House has proposed taking a small ownership stake in exchange for extending portions of the loan repayment schedule.
Lithium Americas’ stock more than doubled, climbing to an intraday high of $6.23 from Tuesday’s close of $3.07, giving the company a market capitalization of about $1.5 billion.
The move marks the latest step in the administration’s effort to secure U.S. access to critical minerals used in clean energy technologies. It would also be the first time Washington has proposed taking direct ownership in a Canadian mining company. Earlier this year, the Department of Defense took a 15% equity stake in rare earth miner MP Materials, sending that company’s shares sharply higher.
Thacker Pass, located in northern Nevada, is expected to become one of the largest sources of lithium in North America. The project is a joint venture between Lithium Americas, which owns 62% and serves as operator, and GM, which holds a 38% stake and has agreed to purchase lithium output once production begins. The first phase is slated to begin operations in late 2027.
Lithium is a critical material for electric vehicle batteries, and U.S. officials have increasingly sought to reduce reliance on foreign supply chains dominated by China.
An administration official told CNBC that the equity stake would serve as a “cash buffer” to reduce risk for taxpayers. The official added that while negotiations remain ongoing, discussions with Lithium Americas and GM have been positive.
A final deal could also require approval from Canadian regulators, given Lithium Americas’ jurisdiction. GM declined to comment.
