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2h ago

DOE to Take 5% Stakes in Lithium Americas and Thacker Pass, Lifting Shares in Late Trading

The planned federal equity positions aim to de-risk financing for the Nevada mine to bolster domestic battery minerals.

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The GM logo is seen on the China Headquarters in Shanghai, China, August 29, 2022. REUTERS/Aly Song
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Overview

  • Energy Secretary Chris Wright said the Department of Energy will take a 5% stake in Lithium Americas and a separate 5% stake in the Thacker Pass project, according to Bloomberg.
  • Lithium Americas shares jumped roughly 32% to 35% in after-hours trading following the announcement, Benzinga and CNBC reported.
  • The move aligns with a broader federal push to secure critical-minerals supply, following recent U.S. investments in domestic materials producers.
  • The equity plan complements a reworked roughly $2.3 billion DOE financing package under discussion, with terms such as amortization changes and potential warrants still being negotiated.
  • General Motors holds about 38% of Thacker Pass and partner consents remain necessary, while Phase 1 is targeted to start operations in late 2027 and the project has drawn local and tribal opposition.