Despite the Trump administration's past rhetoric against the energy transition, a recent revelation sheds light on their pursuit of a significant stake in a crucial American lithium mine. Reports indicate the administration is seeking up to a 10% equity share in Lithium Americas, a company in which General Motors (GM) holds a substantial investment, in exchange for renegotiating a $2.26 billion Department of Energy loan. A White House official stated that President Trump supports the project and wants to ensure its success while protecting taxpayer interests. This move underscores the administration's pragmatic approach, despite their public stance. This strategic investment follows similar government negotiations resulting in equity stakes in companies like Intel and MP Materials.
Lithium Americas is developing the Thacker Pass mine in Nevada, a project poised to become the largest lithium mine in the Western Hemisphere. The initial phase of the mine is projected to generate enough lithium to support the production of 800,000 electric vehicles annually. The project received approval under the Trump administration, and the loan was later awarded by the Department of Energy's Loan Program Office under President Biden. GM's significant 38% stake, acquired last year for $625 million, grants them rights to the entirety of the first phase's lithium production and 20 years of the second phase's output, enough for 1.6 million EVs over two decades. The Trump administration's request reportedly includes a stipulation for GM to guarantee these purchases, adding an interesting layer to the narrative given their past public positions on the EV market. This situation highlights the complex interplay between government policy, private investment, and the burgeoning electric vehicle industry, presenting both opportunities and challenges for all involved.
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Originally published at: https://techcrunch.com/2025/09/24/trump-administration-wants-10-stake-in-american-lithium-miner-that-sells-to-gm/
