The Trump Administration is pursuing a direct equity stake in the Thacker Pass lithium project located in Humboldt County, Nevada, as part of an effort to bolster the United States’ critical minerals supply chain. This move aims to reduce dependency on China, which currently dominates the global market for essential metals and rare earth elements. Reports indicate that the administration is negotiating a 10% stake in Lithium Americas Corp., the firm responsible for developing the Thacker Pass project.
According to Reuters, the discussions also involve a $2.26 billion loan from the U.S. Department of Energy that Lithium Americas plans to utilise for the project. The company aims for mechanical completion of Thacker Pass by late 2027. Notably, General Motors acquired a 38% stake in the project last year, investing a total of $625 million in cash and letters of credit.
Importance of Thacker Pass for U.S. Supply Chain
Thacker Pass is poised to play a critical role in establishing a domestic battery supply chain, enhancing both economic and national security. The project is expected to significantly reduce the United States’ carbon footprint associated with lithium batteries and minimize reliance on foreign suppliers. With an initial design capacity of 40,000 tonnes per year of battery-quality lithium carbonate, Thacker Pass is projected to become the largest lithium production facility in the Western Hemisphere. It is anticipated to increase U.S.-sourced lithium volumes nearly tenfold.
The request for a government stake surfaced during negotiations concerning the loan’s amortization schedule, as reported by sources familiar with the discussions. A White House official mentioned, “President Trump supports this project. He wants it to succeed and also be fair to taxpayers.” The official further emphasized, “But there’s no such thing as free money.”
Following the report of the administration’s interest, shares in Lithium Americas surged by 80% in after-hours trading on Tuesday. This marked a significant response, reminiscent of a similar surge experienced by MP Materials after it announced a public-private partnership with the U.S. Department of Defense (DoD) aimed at developing a comprehensive U.S. rare earth magnet supply chain.
Global Context and Market Dynamics
The U.S. government’s involvement underscores its commitment to securing a reliable domestic supply of critical minerals. Currently, China maintains a dominant position in the market, particularly in the processing of critical minerals and production of rare earths. The International Energy Agency (IEA) highlighted in its 2025 Global Critical Minerals Outlook that the concentrated supply of these minerals poses risks of “painful disruptions” in the market.
Despite numerous initiatives and government support aimed at developing domestic supply chains, China’s market share has grown in recent years. The IEA report revealed that China controls refining operations for 19 out of 20 analyzed minerals, with an average market share of around 70%. Moreover, the agency noted that prices for these minerals have experienced substantially more volatility than traditional commodities like oil and natural gas.
While the market is currently well-supplied with critical minerals, concerns remain over the concentration of supply among a limited number of producers, particularly in China. The Trump Administration’s interest in equity stakes in domestic projects reflects an urgent desire to diminish this reliance and ensure a more resilient supply chain for the United States.
