White House seeks equity stake to close lithium finance deal
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The Trump administration wants a small equity stake in Lithium Americas as it renegotiates the company's $2.26 billion Energy Department loan for the Thacker Pass project in Nevada, a White House official said Tuesday.
- Reuters first reported the proposal.
Why it matters: It's the latest example of the Trump administration taking stakes in companies that produce key materials.
- There's bipartisan support for boosting U.S. supplies of key minerals, and Thacker Pass — aided by the loan approved in 2024 — would provide major new domestic output.
State of play: The official said Lithium Americas and partner GM sought a small modification to enable a longer repayment period on part of the loan.
- "In exchange for their minor modification, our minor modification was essentially for the administration to have some equity in the deal to create a cash buffer and eliminate some risk for taxpayers ... we want some equity on behalf of taxpayers," the White House official said.
- Lithium Americas has agreed, but negotiations with GM continue, the official said. Reuters reported the stake could be up to 10%, but the official signaled that it's likely smaller.
Of note: Lithium Americas said it's in discussions with DOE and GM "regarding first draw on the DOE Loan."
- This includes "incremental requests from the DOE for potential further conditions to first draw and/or potential amendments to the DOE Loan and associated transaction documents," it said.
- GM didn't provide comment.
What we're watching: The talks — and the market. Lithium Americas' stock jumped 68% in pre-market trading.
- "We're ... trying to find a way that this works for everyone," the White House official said.
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