Lithium Americas: National Security, Taxpayer Equity and the Future of Lithium Mining
Federal equity in Lithium Americas mirrors China’s state-backed approach, using ownership stakes to secure strategic minerals and control supply chains.
The Trump administration is pursuing an equity stake of up to 10% in Lithium Americas Corp., a Vancouver-based mining company LAC 0.00%↑ , as part of renegotiations over a $2.26 billion federal loan for the Thacker Pass lithium mine in Nevada. The move is tied to the current administration’s strategy to strengthen domestic industries critical to national security, including technology and critical minerals.
The Thacker Pass mine, located in Humboldt County, Nevada, is under construction and expected to become the largest lithium source in the Western Hemisphere by 2029. Phase one aims to produce 40,000 metric tons of battery-grade lithium carbonate annually, enough for about 800,000 electric vehicles. The mine has a projected 85-year lifespan, with total capacity reaching 160,000 metric tons per year over five phases.
The administration’s plan to take up to a 10% stake in Lithium Americas mirrors a playbook China has followed since joining the WTO in 2001, where state-backed equity stakes, and policy support built national champions across strategic sectors. Example in August 2025, the US converted $11.1 billion in CHIPS Act funds into a 9.9% stake in Intel, buying 433.3 million non-voting shares at $20.47 each and making the government Intel’s largest shareholder while bolstering domestic semiconductor capacity.
Similarly, in July 2025 the Department of Defense agreed to purchase $400 million of a newly created series of preferred stock (convertible into common shares) and warrants at MP Materials, with an initial conversion and exercise price of $30.03 per share. On an as-converted and as-exercised basis, those instruments would represent 15% of MP’s issued and outstanding common shares as of July 9, 2025, positioning DoD to become the company’s largest shareholder. The transaction supports a public-private partnership to accelerate magnet production (including a new “10X” magnet facility) at Mountain Pass, expand separation capabilities, and reduce dependence on foreign rare earth supply chains.
For Lithium Americas, the talks center on converting a $2.26 billion federal loan into an equity position. That would involve revised repayment schedules and added taxpayer protections. General Motors, already holding a 38% stake through $625 million in commitments to Thacker Pass, is part of the negotiations. GM’s package included $430 million in direct cash for Phase 1 and a $195 million letter of credit.
Although described as a step to protect national interests, Thacker Pass does not present a case where government intervention is strictly required beyond the loan guarantee. Even if EV adoption slows, the mine’s output will remain relevant as advanced technologies, including data storage, defense applications, and grid-scale batteries, continue to drive lithium demand. Phase 1 production is a fraction of what future markets are expected providing stability for the project.
The decision to pursue an equity stake therefore appears to be less about shoring up project fundamentals and more about establishing a measure of federal control over a strategic asset. This mirrors how China has approached critical industries since entering the WTO, using direct ownership stakes in companies to secure supply chains, capture value domestically, and ensure that production aligns with national priorities.
Construction Timeline
March 2023 – Construction Commencement
Start of Major Construction: Construction activities commenced in March 2023, marking the beginning of the Thacker Pass lithium project in Humboldt County, Nevada.
Federal and State Permits: All necessary federal and state-level permits were secured, including air, water, and mining reclamation permits.
May 2025 – Initiation of Major Construction Activities
Construction Milestone: Major construction activities began in May 2025, with the first placement of permanent concrete in the processing plant area.