Trump officials seek equity stake in lithium Americas as part of renegotiation of $2.26 billion loan for Thacker Pass lithium project, two sources tell Reuters
- Lithium Americas has offered Trump administration no-cost warrants that would equate to 5% to 10% of Company’s common shares, one source says
Info via Reuters, in summary:
The Trump administration is pressing for an equity stake of up to 10% in Lithium Americas as part of ongoing talks to restructure a $2.26 billion Department of Energy loan for the Thacker Pass lithium mine in Nevada. Sources told Reuters that Lithium Americas has offered Washington free warrants equating to 5–10% of its common shares in an attempt to secure funding and finalize revised repayment terms.
Thacker Pass, backed by GM with a $625 million investment and a 38% stake, is expected to become the largest lithium source in the Western Hemisphere when it begins production in 2028. The mine is viewed as crucial for U.S. supply chain security and reducing reliance on China, which dominates lithium refining.
Officials argue taxpayers should benefit from the project, especially amid concerns about Lithium Americas’ ability to repay given weak prices caused by Chinese oversupply. Alongside equity, Trump aides want GM to guarantee long-term offtake purchases and possibly relinquish some project control to Washington. Negotiations remain ongoing, with Lithium Americas and GM stressing their confidence in the project’s national importance.
