Shares of Lithium Americas Corp. rose 35% in extended trading on Sept. 30 after U.S. Energy Secretary Chris Wright said the federal government will acquire a stake in the Canadian mining company and its Nevada-based Thacker Pass project.
The Department of Energy (DOE) plans to take a 5% equity stake in Lithium Americas and a separate 5% stake in the Thacker Pass mine itself, Wright told Bloomberg Television. The investment is intended to strengthen U.S. control over critical minerals needed for electric vehicle batteries and renewable energy storage.
“This is just economic common sense,” Wright said Tuesday. “Lithium Americas needs to raise some more capital so the mine is financially sound. We’re leaning in with a large amount of debt capital. So it’s just a more commercial transaction where we’re making sure lithium is going to be mined and refined in the United States.”
Government confirms 5% investment
The move marks the latest step in the White House’s strategy to secure domestic supply chains for key minerals. While the government has supported private projects through loans and grants, this is the first time it has proposed a direct equity investment in a Canadian company.
Lithium Americas trades on both the New York Stock Exchange and the Toronto Stock Exchange but is incorporated and domiciled in Canada. The U.S. government’s stake signals a deeper level of involvement in ensuring production of lithium within its borders.
General Motors already holds a minority stake in Thacker Pass, which sits in northern Nevada.
Thacker Pass mine timeline
Thacker Pass is expected to become one of the largest lithium sources in North America once operational. Construction permits have been approved, and the first phase of production is scheduled to begin in late 2027.
The DOE’s equity purchase comes amid growing scrutiny of the project. Environmental groups, ranchers, and members of local Indigenous communities have raised concerns over land use, water consumption, and cultural impacts. Protests have taken place since the mine’s approval, but the government has maintained that the project is vital to U.S. economic and energy security.
Wright said the federal government’s dual stakes—in both the mine and the parent company—will ensure that production benefits remain tied to U.S. interests.
Rising demand for U.S. lithium
Lithium is a critical component of electric vehicle batteries, and U.S. demand has surged as automakers accelerate the shift to electrification. Currently, the majority of global lithium supply is controlled by companies operating in Chile, Australia, and China.
By investing directly in a North American project, the U.S. aims to reduce reliance on foreign suppliers and support domestic battery manufacturing. Wright emphasized that the deal is structured not as a bailout but as a commercial transaction designed to secure supply.
Shares of Lithium Americas have gained 92% so far this year, fueled in part by reports that the U.S. government was preparing to take a stake. Tuesday’s after-hours jump brought the stock to $7.69, up from its closing price of $5.71.
The DOE did not disclose the total financial value of its planned investment, but Wright noted that it will be accompanied by a substantial debt package to support mine development.
If completed, the Thacker Pass project could supply enough lithium carbonate to support the production of hundreds of thousands of electric vehicles annually, according to company filings.
With the government now directly involved, Lithium Americas faces both new momentum and heightened scrutiny. As construction begins, the mine’s progress will serve as a test of the U.S. strategy to secure critical minerals while balancing environmental and community concerns.
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