The U.S. government has announced a significant investment in Lithium Americas, a company focused on developing the Thacker Pass lithium mine in Nevada. This initiative aims to bolster domestic lithium production, which remains critically low despite the United States possessing substantial lithium deposits. The federal government is trying to answer the surging popularity of electric vehicles (EVs). Their goal is to reduce our reliance on overseas suppliers for critical minerals we need.
Once the Thacker Pass mine is brought into production, it will be expected to produce enough lithium. This lithium will supply the production of nearly 800,000 electric vehicles annually by its first phase. In two decades, the mine’s total production would be enough to power approximately 1.6 million EVs. This venture represents a key step towards enhancing domestic supply chains and ensuring a steady supply of lithium for future energy needs.
General Motors (GM) took a 38% stake in Lithium Americas last year for $625 million. This agreement gives GM the right to buy 100% of the lithium produced during the initial phase. In the second phase, GM will obtain materials from the mine over a 20-year period.
Shares of Lithium Americas jumped by 34% in after-hours trading after the announcement of the government’s investment. In return, the U.S. government is taking a 5% equity stake in Lithium Americas. It’s not just that it’s investing in the joint venture with GM – it’s that this spells a brazen move to consolidate control over key mineral resources.
Former President Trump signed the permit for the Thacker Pass mine in January 2021. This decision further placed the mine as a key project to increase domestic American lithium production. Today, the United States produces less than 1 percent of the world’s lithium. This is particularly worrying in light of the country’s enormous lithium reserves.
U.S. Energy Secretary Chris Wright emphasized the importance of this investment, stating, “Despite having some of the largest deposits, the United States produces less than 1% of the global supply of lithium. Thanks to President Trump’s bold leadership, American lithium production is going to skyrocket.”
Additionally, Wright added that the program fits under the larger goal of decreasing reliance on foreign enemies for key minerals. He added, “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.”