Lithium Americas Doubles in Value on the Stock Exchange: US Government Aims for a Share?

If the rumours about the sale of a stake to the US government remain as such, Lithium Americas itself in reaction to the wave of stock market buying has however released a note to confirm that there are indeed ongoing negotiations at the Department of Energy, also involving partner GM, regarding Thacker Pass and in particular the $2.3 billion public loan to finance its development, which the Doe had granted in 2024, before Donald Trump's presidential victory.

The discussions, Lithium Americas points out, also concern 'additional requests from the Doe for potential additional conditions' relating to the disbursement of the loan.

The statement is sparse and short on details, as are the comments Reuters gathered from the White House: "Trump supports this project," said one official, adding, however, that the president "wants it to be successful and also wants it to be fair to taxpayers, free money does not exist."

A few words, which nevertheless seem to support the hypothesis that a move similar to those already made with Intel and before that with MP Materials, in which not only did the Pentagon become the first shareholder, but also guaranteed a minimum purchase price for the future production of rare-earth oxides and magnets, is under consideration.

For Thacker Pass lithium, the orientation seems to be to shift the burden onto General Motors. From the mosaic of indiscretions - also gathered by other media, including Bloomberg - it emerges that the US government, in the context of the loan negotiations, is also putting pressure on GM to renounce all or part of its share in Thacker Pass or to undertake to absorb the entire production of the first phase of the project: as much as 40,000 tonnes of lithium carbonate per year when fully operational, enough for the batteries of about 800,000 electric cars.

The carmaker had entered into a partnership with Lithium Americas last year, taking over 38% of Thacker Pass for USD 625 million and reserving the right (but not the obligation) for 20 years to buy all the production of the first phase and part of that of the second phase.

The US government - which had authorised the Thacker Pass project during Trump's first term - is now reportedly worried about not getting the loan back (granted by the Biden administration instead) because the price of lithium, also due to Chinese overproduction, is too low.

Without public funds - and in the absence of additional private financiers, which may be difficult to find - the mine and refinery development work in Nevada would have to be halted.

The loan, a GM spokesman confirmed, is 'a necessary part of the financing to commercialise this important asset'. The carmaker 'has confidence in the project, which meets the US administration's goals, and has already committed nearly $1 billion to its development, including a $200 million letter of credit'.