The US government has acquired a 5% equity stake in Canadian mining firm Lithium Americas; a key producer of lithium used in electric vehicle (EV) production and batteries.
Vancouver-based Lithium Americas announced late Tuesday that it had reached an agreement with the US Department of Energy to draw down the first $435 million of a previously announced $2.26 billion loan to support the development of its Thacker Pass facility in the US.
As part of the agreement, the DOE will take a 5% equity stake in Lithium Americas, as well as a separate 5% stake in the Thacker Pass project — a joint venture between Lithium Americas and General Motors.
“We greatly appreciate the support of the Administration, General Motors and our partners in advancing this vital world-class project. Together, we are onshoring large-scale US lithium production, strengthening America’s supply chain, creating exceptional jobs and enhancing our long-term energy security and prosperity," Lithium Americas CEO Jonathan Evans said.
The move comes as Washington ramps up efforts to reduce reliance on China for lithium. The US is also working to secure control over chip manufacturing, including its recent acquisition of a 10% share in chip producer Intel.
In July, the Department of Defense acquired a 15% ownership share in MP Materials, a rare earth mining company.
Following the announcement, shares of Lithium Americas surged 32% in after-hours trading on Tuesday.
- Thacker Pass Project
The Thacker Pass project in Nevada, one of the world's richest lithium reserves, is considered critical to reducing the US's dependence on China for critical raw materials. The facility is expected to become the largest lithium production center in the Western Hemisphere when it becomes operational in 2028.
Automaker General Motors is involved in the project and plans to use the extracted raw material in its electric vehicles. Last year, General Motors invested $625 million for a 38% stake in the mine. The company has secured a 20-year preemptive right for all lithium production from the first phase and a portion of the second phase.
By Mucahithan Avcioglu
Anadolu Agency
energy@aa.com.tr
