The U.S. Department of Energy (DOE) has announced a revised agreement with Lithium Americas Corp. (LAC), supported by General Motors (GM), aimed at protecting taxpayers and supporting the development of domestic lithium production.
Under the new terms, the U.S. government will receive 5% equity ownership in LAC through warrants, as well as an additional 5% ownership in the LAC/GM joint venture via warrants. The DOE’s Loan Programs Office (LPO) uses warrants as part of its collateral strategy to lower repayment risk for taxpayers. The updated agreement also includes over $100 million in new equity and strengthened loan provisions.
According to DOE Secretary Chris Wright, “Despite having some of the largest deposits, the United States produces less than 1% percent of the global supply of lithium. Thanks to President Trump’s bold leadership, American lithium production is going to skyrocket,” he said. “Today’s announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars. President Trump promised to do both and he is delivering.”
The financial arrangement between LPO and LAC was initially established in October 2024. The latest deal aims to support construction at Thacker Pass, where facilities will manufacture lithium carbonate. Once operational, these facilities are expected to produce about 40,000 tonnes per year of battery-grade lithium carbonate for use in lithium-ion batteries.
The DOE stated that it is thoroughly reviewing all applicants and borrowers to ensure taxpayer funds are used effectively.
