Canada | September 24, 2025
US Government Eyes Stake in Lithium Americas, Stock Doubles on Back of Loan Talks
In a dramatic turn of events, the Canadian mining company Lithium Americas saw its shares surge by more than 90% today following reports that the U.S. government is considering taking an equity stake in the firm. The move comes as Lithium Americas, a key player in the development of the Thacker Pass lithium project in Nevada, is renegotiating the terms of a massive $2.2 billion loan from the U.S. Department of Energy. The potential investment signals a new and aggressive approach by the U.S. government to secure control over vital mineral supply chains and reduce its dependence on foreign nations, especially China.
Headline Points
* Lithium Americas’ shares soared by as much as 96% in a single day after reports emerged that the U.S. government is proposing to take an equity stake in the company.
* The potential government investment, reportedly up to a 10% stake, is part of ongoing negotiations for a $2.2 billion loan for the company’s Thacker Pass mine in Nevada.
* The move is an unprecedented step in the government’s strategy to bolster domestic supply chains, as it’s the first time such an offer has been extended to a Canadian-incorporated company.
* The U.S. government, which has already taken stakes in other strategic companies like MP Materials, is seeking to ensure the Thacker Pass project’s success and mitigate risks to taxpayers.
A New Approach to Resource Security
The U.S. government’s interest in acquiring a stake in Lithium Americas is the latest example of a significant shift in its industrial policy. The move is a direct response to a global supply chain increasingly dominated by China, particularly in the production of lithium, a critical component of batteries for electric vehicles and other advanced technologies. This approach, which has been championed by the current administration, aims to reduce the risk of supply disruptions and enhance national security.
An official from the administration, speaking on the condition of anonymity, stated that the equity stake is being proposed as a way to create a “cash buffer” and reduce the risk to taxpayers, particularly since the company reportedly failed to meet some of the initial loan conditions. The official added that while no final agreement has been reached, the administration is “in favor of the project” and that talks are going well.
Market and Industry Impact
The news had an immediate and profound impact on financial markets. Lithium Americas’ shares, which trade on both the New York Stock Exchange and the Toronto Stock Exchange, saw their value nearly double. This dramatic price movement demonstrates the strong market validation of government involvement in critical resource development.
The Thacker Pass mine, which is a joint venture with General Motors, is poised to become one of the largest sources of lithium in North America. The project is seen as a key step in building a sustainable and secure domestic battery supply chain. The potential government investment would further solidify this project’s strategic importance, giving the U.S. a direct interest in its success. The deal also highlights a growing trend of direct government intervention in industries deemed vital to U.S. interests, following a similar strategy with companies like rare-earth miner MP Materials.
