In this articleMPLAC-CA your favorite stocksCREATE FREE ACCOUNTA Lithium Americas worker cesses lithium at the company's Reno, Nevada R&D lab.Lithium Americas stock soared Wednesday as the Trump administration is seeking an equity stake in the mining company, which is based in Vancouver, British Columbia.The White House posed the equity stake as Lithium Americas renegotiates the terms of a $2.2 billion loan from the Department of Energy for its Thacker Pass mine, a Trump administration official told CNBC.
Reuters first reported the equity stake posal.Lithium Americas' s surged nearly 80% in morning trading.It is the move by the White House to take direct ownership in the mineral supply chain critical to U.S.
interests, but the first such stake posed for a Canadian company.
Lithium Americas trades on both the Toronto Stock Exchange and the NYSE but is incorporated and domiciled in Canada.The Department of Defense took a 15% equity stake in rare earth miner MP Materials in July.
s of Las Vegas-based MP Materials have more than doubled since the deal.Thacker Pass in northern Nevada is expected to become one of the largest sources of lithium in North America with the first phase of the ject scheduled to start operations in late 2027.
The ject is a joint venture between Lithium Americas and General Motors. Lithium Americas has a 62% stake and operates the mine.
GM has a 38% stake and has agreed to buy offtake from the mine when it is operational. Lithium is a critical material for electric vehicle batteries.
Lithium Americas and GM had to renegotiate the terms of the loan for Thacker Pass because they did not meet the conditions for the first disbursement, the Trump administration official said.
During negotiations with the Department of Energy, they requested to push out part of the loan repayment into later years, the official said."If we're going to push out part of the repayment into later years, then the administration would a very small stake of equity to create essentially a cash buffer and eliminate some risk on behalf of taxpayers," the official said.A deal has not been finalized but the Trump administration supports the ject and the discussions are positive, the official said.
The investment could need Canadian apval as well given the company's jurisdiction.Interior Secretary Doug Burgum revealed in April that the Trump administration was considering taking equity stakes in miners to back them against state-sponsored competition in China.CNBC has reached out to Lithium Americas and GM for .