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| US Thacker Pass lithium project |
US government stake in Lithium Americas revives Thacker Pass and domestic lithium ambitions
Lithium Americas shares surged nearly 95% after reports revealed potential US government involvement in the Thacker Pass lithium project. This spike reflects renewed interest in securing North America’s largest lithium resource and reshaping domestic EV supply chains.
Thacker Pass gains momentum with potential US stake and DOE loan
Lithium Americas confirmed it is negotiating with the US Department of Energy (DOE) and partner General Motors (GM) for the first draw of a $2.3 billion loan. This funding supports the construction of a processing facility near the mine site in Nevada.
At the center of the surge is a report suggesting that the Trump administration may pursue a 10% equity stake in Lithium Americas. This move would recalibrate terms of the loan and signal strategic support for domestic lithium production.
Thacker Pass, approved under Trump’s first term, is set to deliver 40,000 tonnes of lithium carbonate annually in Phase 1. That output can power approximately 800,000 electric vehicles and dwarfs current production at Albemarle’s Silver Peak facility.
Strategic implications for EV supply chains and critical mineral security
GM, holding a 38% stake in the project, saw its own shares rise 2.5% following the announcement. The Thacker Pass project is now positioned as the Western Hemisphere’s largest lithium asset by 2028, significantly enhancing US critical mineral independence.
However, regulatory risk persists. A DOE advisor recently cautioned that Chinese lithium imports still present cost-competitive challenges. As a result, the loan’s viability may hinge on market pricing, geopolitics, and downstream processing capabilities.
Meanwhile, US officials reportedly considered similar investments in MP Materials and Intel, aligning with broader efforts to onshore strategic supply chains across sectors.
ScrapInsight Commentary
Thacker Pass underscores the strategic shift toward domestic mineral security in North America. A US stake in Lithium Americas would elevate the project’s financing profile while signaling bipartisan support for lithium self-reliance. If approved, this move could intensify pricing pressure on Chinese suppliers and reshape Western EV value chains through 2030.
