The U.S. Department of Energy (DOE) has announced a revised agreement with Lithium Americas Corp. (LAC), supported by General Motors (GM), to enhance taxpayer protections and advance the development of domestic lithium resources.
Under the new arrangement, the federal government will receive a 5% equity stake in LAC through warrants, along with an additional 5% stake via warrants in the LAC/GM joint venture. These measures are intended to reduce repayment risk for taxpayers as part of the DOE Loan Programs Office’s (LPO) overall collateral strategy. The renegotiated deal also introduces more than $100 million in new equity and includes several amendments designed to improve loan resilience.
According to DOE Secretary 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 terms will support construction at Thacker Pass, where facilities are expected to produce about 40,000 tonnes per year of battery-grade lithium carbonate once fully operational. This output will contribute significantly to U.S.-based manufacturing for lithium-ion batteries and supports efforts by the current administration to increase domestic control over key supply chains.
The original financial agreement between LPO and LAC was established in October 2024. As part of its standard procedures, LPO employs various methods—including warrants—to protect public funds; similar strategies were used in previous loans such as one issued to Tesla in 2010.
DOE stated it is carefully reviewing each applicant and borrower involved with its programs to ensure all expenditures serve the best interests of American citizens.
