WASHINGTON (AP) — The White House is moving forward with a deal that would allow the U.S. government to take a small equity stake in a Canadian company that is developing one of the world's largest lithium mines in northern Nevada, an official said.
The Department of Energy and Lithium Americas, developer of the proposed Thacker Pass lithium mine and processing plant about 200 miles north of Reno, have agreed on changes to a $2.3 billion federal loan that could allow the project to move forward to extract the silver-white metal used in electric vehicle batteries. General Motors has pledged more than $900 million to help develop Thacker Pass, which holds enough lithium to build 1 million electric vehicles annually.
The proposed equity stake in Vancouver-based Lithium Americas is the latest example of President Donald Trump's administration intervening directly in private companies. The government is getting a 10% 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.
A White House official declined to specify the size of the U.S. stake in Lithium Americas, but said it would be “very small” — less than 10% — and serve as “a cash buffer” for the company. Lithium Americas asked the Energy Department to restructure the federal loan, which was approved last year by the Biden administration.
“We support the project moving forward,'' said the White House official, who was granted anonymity in order to talk about a deal that is not yet completed.
“Critical minerals like lithium are very important' to boost the U.S. economy and restore domestic manufacturing," the official said, adding: “We're trying to do this in a way that is fair to the taxpayers. We don't believe in free money.”
A spokesman for Lithium Americas declined to comment, but the company said in a statement that it is in discussions with DOE and General Motors regarding the DOE loan.
“The topics of these discussions include certain conditions precedent to draw on the DOE Loan and associated loan specifics, as well as incremental requests from the DOE for potential further conditions” to gain access to the loan, the statement said.
Jim Cain, a GM spokesman, said Friday the company remains “confident in the project” but declined to comment on ongoing negotiations.
Thacker Pass is considered crucial to building a domestic supply chain to make batteries for electric vehicles and other electronics. It also represents a rare point of agreement between Trump and former President Joe Biden. Both Republicans and Democrats support the mine project as a way to boost American critical minerals production and cut reliance on China, the world’s largest lithium processor.
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.
Environmental groups and leaders of three tribes spent years fighting the mine, which they say borders the sacred site of a massacre of more than two dozen Native Americans in 1865.
The DOE under Biden backed the project as a way to help mitigate climate change by speeding the shift away from fossil fuels.
Trump has aggressively moved away from confronting climate change, labeling it “ the greatest con job ever perpetrated on the world ” in a speech this week at the United Nations. “If you don’t get away from the green energy scam, your country is going to fail," Trump told world leaders on Tuesday.
The bid to boost the lithium project comes as the pace of U.S. electric vehicle sales has slowed as the industry struggles to attract mainstream buyers who remain concerned about charging infrastructure and affordability.
A law approved by congressional Republicans and signed by Trump is likely to deal another blow to EV adoption. The massive tax law approved this summer phases out federal incentives for new and used EV purchases, effective at the end of the month.
Consumers rushed to dealer lots this quarter to take advantage of the credits before the phase-out takes effect. The credits have saved car buyers up to $7,500 off the cost of their EV.
Without the incentives, many automakers will struggle to make sales.
Besides batteries for cars, cell phones and other electronics, lithium is also used in the manufacture of glass, chemicals and pharmaceuticals. Lithium batteries are also used to store wind and solar power.
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Associated Press writer Alexa St. John in Detroit contributed to this report.
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