The United States government has taken a minority stake in Lithium Americas, a Vancouver-based company developing one of the world’s largest lithium mines in northern Nevada. The move underscores Washington’s determination to secure domestic supplies of critical minerals needed for the clean energy transition and high-tech industries.
The Department of Energy confirmed it will acquire a 5 percent equity stake in Lithium Americas and a parallel 5 percent stake in the Thacker Pass lithium mining project. The Nevada site is a joint venture with General Motors and is widely regarded as one of the most significant new sources of lithium in the Western Hemisphere.
Lithium is a vital component in the production of high-performance batteries used in electric vehicles, smartphones, and renewable energy storage. With China currently dominating global processing, U.S. officials have grown increasingly concerned about supply vulnerabilities. Washington views Thacker Pass as a crucial step toward reducing dependence on foreign sources.
Energy Secretary Chris Wright described the agreement as a turning point for U.S. industrial strategy. In a statement, he said the deal would “reduce reliance on foreign adversaries for critical minerals by strengthening domestic supply chains and ensure better stewardship of American taxpayer dollars.”
Production at Thacker Pass is expected to begin with an annual output of 40,000 tonnes of battery-grade lithium carbonate. Industry analysts estimate that this volume would be sufficient to supply batteries for approximately 800,000 electric vehicles each year. The scale of the project positions the mine as a central player in the Biden administration’s push for widespread EV adoption.
The bipartisan support for the project reflects a rare moment of alignment in Washington. Lawmakers from both parties have urged greater investment in mineral independence, arguing that U.S. economic security and technological competitiveness hinge on controlling supplies of lithium and rare earth elements.
China currently processes the majority of the world’s lithium, leaving Western nations vulnerable to price shocks and export restrictions. By backing Thacker Pass, the U.S. government aims to build an alternative supply network and reduce exposure to geopolitical risks.
The stake in Lithium Americas also signals a broader shift in federal economic policy. In recent years, Washington has moved beyond regulation and subsidies, taking more direct financial positions in companies viewed as strategically important.
Earlier this year, the administration secured a 10 percent stake in Intel through the conversion of federal support into equity. In July, it spent $400 million of taxpayer funds to acquire shares in MP Materials, making the U.S. government the largest shareholder in the Las Vegas-based rare earths miner.
The White House also negotiated revenue-sharing arrangements with major chipmakers Nvidia and AMD, ensuring the government receives 15 percent of earnings from certain technology exports to China. These measures highlight a pattern of hands-on economic intervention that departs from previous decades of lighter-touch industrial policy.
Lithium Americas confirmed on Wednesday that it had reached a nonbinding agreement in principle with the Department of Energy. The deal includes access to the first $435 million draw of a federal loan designed to accelerate construction of the Thacker Pass project.
As part of the financial package, the Department of Energy has also agreed to defer $182 million in debt service over the first five years of the loan. This concession provides the company with more flexibility in managing startup costs and ensures cash flow is directed toward development rather than repayment.
Industry experts say the government’s financial involvement will likely accelerate private investment. By taking a direct equity position, Washington signals confidence in the project’s viability, which could help attract additional capital from institutional investors and strategic partners.
Environmental groups, however, have raised concerns about the ecological impact of large-scale lithium mining in Nevada. Local communities have voiced opposition to the project, citing water use, land disruption, and cultural preservation issues. Despite these challenges, federal and state authorities have prioritized the mine’s development in light of its strategic value.
The Thacker Pass initiative highlights the tension between environmental stewardship and industrial necessity. While the clean energy transition depends heavily on lithium, the mining process itself remains resource-intensive and environmentally controversial. Policymakers face the task of balancing ecological protections with economic and national security priorities.
For Washington, the decision to invest in Lithium Americas reflects a broader recognition that critical minerals are not just commodities but cornerstones of modern geopolitical power. With electric vehicles and renewable energy shaping the future of global industry, control over lithium supply has become as important to national strategy as oil was in the last century.
