Feds secure stake in Nevada lithium mine — and the company building it
The Trump administration has negotiated a stake in both the company building a lithium mine in Northern Nevada and the mine itself, the U.S. Energy Department said Tuesday.
The federal government will now own a 5 percent stake in the Thacker Pass mine in Humboldt County and another 5 percent stake in Lithium Americas, the Canadian company building it.
It’s a move for the U.S. government to have more direct control over the domestic critical mineral market, similar to contracts the Defense Department has with Las Vegas-based rare earth minerals company MP Materials.
“Today’s announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars,” Energy Secretary Chris Wright said in a Tuesday statement. “President Trump promised to do both and he is delivering.”
Stock prices explode
Tuesday’s news caused Lithium Americas’ stock in both the New York and Toronto Stock Exchanges to rise about 35 percent.
Last week, news broke that the White House was interested in renegotiating the terms of its $2.26 billion loan from the Energy Department and seeking as much as 10 percent ownership in Lithium Americas.
An unnamed White House official told Reuters at the time that President Donald Trump was supportive of the project, but that “there’s no such thing as free money.”
Lithium is considered a critical mineral by the Energy Department, meaning it is deemed necessary for economic or national security efforts. It is the main component for electronic batteries, such as those used in electric vehicle manufacturing.
Auto manufacturer General Motors owns a 38 percent stake in the mine after investing $625 million, with an agreement that it will receive all of the lithium produced in its first phase and part of the second phase over 20 years.
The mine has remained a hot topic among nearby ranchers and tribes that are native to the Great Basin. A rancher and a few tribes challenged the mine in court to no avail. Lithium Americas has since negotiated a community benefit agreement with the nearby Fort McDermitt Paiute Shoshone tribe, however.
“We greatly appreciate the support of the Administration, General Motors and our partners in advancing this vital world-class project,” said Jonathan Evans, president and CEO of Lithium Americas, in a statement. “Together, we are onshoring large-scale U.S. lithium production, strengthening America’s supply chain, creating exceptional jobs and enhancing our long-term energy security and prosperity.”
Contact Alan Halaly at ahalaly@reviewjournal.com. Follow @AlanHalaly on X.
