GM Invests $625M in Thacker Pass Lithium Project, Trump Admin Eyes $2.26B Loan
General Motors (GM) has invested $625 million in the Thacker Pass lithium project, securing a 38% stake and long-term supply rights. This move is crucial to GM's electric vehicle (EV) strategy. Meanwhile, the Trump Administration is considering a $2.26 billion loan to Lithium Americas, the project's lead, in exchange for a stake. This proposal follows a significant rally in Lithium Americas' stock, with shares jumping nearly 71%.
The Thacker Pass project, located in Nevada, is set to create 1,800 jobs during construction and 360 permanent positions once operational. It's the largest lithium source in the Western Hemisphere, aiming to produce 40,000 tonnes of battery-grade lithium carbonate annually. This move aligns with Washington's increasing focus on national security and reducing dependence on China for key minerals.
The proposed deal is part of ongoing negotiations to revise a $2.3 billion Department of Energy loan backing the project. The Trump administration is seeking a 10% stake in Lithium Americas, along with stronger safeguards like equity warrants and project oversight. These demands reflect a broader trend of Trump officials pursuing stakes in key tech firms to ensure taxpayer-backed financing has real returns.
GM's investment in Thacker Pass, along with the Trump administration's proposed loan and stake in Lithium Americas, signals a significant push for domestic lithium production. This move is expected to boost job creation, secure national mineral interests, and support the growing EV market.
