Lithium Americas stock surged nearly 80% on Wednesday after reports that the Trump administration is seeking an equity stake in the Canadian mining company, marking the latest step in Washington’s bid to secure direct ownership in the mineral supply chain critical to U.S. strategic interests.
According to a Trump administration official who spoke to CNBC, the White House is pursuing an equity stake as Lithium Americas renegotiates the terms of a $2.2 billion Department of Energy (DOE) loan for its Thacker Pass mine in northern Nevada. The development was first reported by Reuters.
The official said Lithium Americas had not met conditions for the first loan disbursement, prompting talks over new terms. The miner asked to delay part of its repayment into later years, and in response, the administration proposed a small equity stake to protect taxpayers.
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“If we’re going to push out part of the repayment into later years, then the administration would like a very small stake of equity to create essentially a cash buffer and eliminate some risk on behalf of taxpayers,” the official said.
While no agreement has yet been finalized, the official described negotiations as positive. Because Lithium Americas is incorporated and domiciled in Canada, any stake would also likely require Ottawa’s approval, though the company trades on both the Toronto Stock Exchange and the NYSE.
A cross-border precedent
This would be the first U.S. government equity stake in a Canadian mining company. It follows a precedent set in July when the Department of Defense acquired a 15% equity stake in MP Materials, the Las Vegas-based rare earth miner. Shares of MP Materials have more than doubled since that deal was announced.
The Lithium Americas move signals Washington’s willingness to extend its mineral strategy beyond domestic borders to close allies, in sharp contrast to the MP Materials deal, which was strictly U.S.-based.
Thacker Pass and GM partnership
Thacker Pass, located in northern Nevada, is expected to become one of the largest sources of lithium in North America once operational. Lithium is a key material for electric vehicle (EV) batteries, making the project central to U.S. efforts to reduce reliance on Chinese supply chains.
Lithium Americas holds a 62% stake in Thacker Pass and operates the mine. General Motors holds the remaining 38% stake and has secured an offtake agreement for the lithium once production begins.
The Trump administration has stressed the need to protect domestic and allied mining ventures from Chinese dominance. Interior Secretary Doug Burgum revealed in April that the administration was weighing equity stakes as a tool to help miners compete with state-backed Chinese firms that control much of the global lithium refining and rare earth supply chain.
By pushing for equity instead of relying solely on loans or grants, Washington positions itself with both a financial buffer and a direct strategic interest in companies at the center of its industrial policy.
U.S. vs. China
The Lithium Americas deal highlights a growing divergence in how major powers secure critical minerals.
- China’s playbook: Beijing has long relied on direct equity stakes in overseas mines across Africa and South America, often through state-backed giants. Chinese companies already hold significant positions in lithium projects in Chile, Argentina, and the Democratic Republic of Congo. This control of raw materials, coupled with China’s near-monopoly on refining capacity, has given Beijing a decisive edge in the EV and battery supply chain.
- U.S. strategy: Washington is only now moving into direct ownership. The MP Materials deal and the proposed Lithium Americas stake represent a shift from subsidies and loans toward state equity participation, a model designed to mirror aspects of China’s approach but limited so far to North America.
- Allied comparisons: The European Union is pursuing a different model through its Critical Raw Materials Act, which emphasizes subsidies and financing tools but stops short of direct ownership. Canada, meanwhile, has tightened restrictions on Chinese investment in its lithium sector, effectively steering companies toward partnerships with Western governments and firms.
The contrast underscores how the United States is adapting its policies to counter China’s longstanding dominance, while also testing how far allies like Canada are willing to allow Washington into their domestic mining sector.
If approved, the deal would mark a significant expansion of U.S. industrial strategy—beyond domestic firms like MP Materials to allied companies—and could pave the way for similar cross-border investments in the future.