The U.S. Department of Energy (DOE) has restructured its financial agreement with Lithium Americas Corp. (LAC), with backing from General Motors (GM), to strengthen protections for taxpayers and support the development of a domestic lithium supply chain.
Under the revised terms, the federal government will receive 5% equity ownership in LAC through warrants, as well as an additional 5% ownership in the LAC/GM joint venture via similar warrants. The DOE’s Loan Programs Office (LPO) uses warrants as part of its collateral strategy on loans to reduce repayment risk for taxpayers. The new deal also includes significant loan amendments and over $100 million in new equity investment.
According to Secretary of Energy 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,” Wright 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 updated agreement aims to finance construction at Thacker Pass, which is expected to become the only domestic source for battery-grade lithium carbonate once operational. The facility is projected to produce about 40,000 tonnes per year for use in lithium-ion batteries—a key step toward meeting administration goals for securing U.S.-based supply chains.
The DOE stated that it reviews all applicants and borrowers carefully to ensure taxpayer funds are used effectively and in line with national interests.
