The U.S. Department of Energy (DOE) has announced a restructuring of its loan agreement with Lithium Americas Corp. (LAC), supported by General Motors (GM). The revised deal is intended to protect taxpayers and strengthen the domestic supply of lithium carbonate, a critical mineral for battery production.
Under the new terms, the federal government will receive 5% equity ownership in LAC through warrants, as well as an additional 5% stake in the LAC/GM joint venture. The DOE’s Loan Programs Office (LPO) uses warrants as part of its collateral strategy to lower repayment risk for taxpayers. The updated agreement also includes more than $100 million in new equity and enhanced loan amendments designed to increase resilience.
U.S. Energy Secretary Chris Wright stated, “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,” said U.S. Energy Secretary Chris Wright. “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 original financial agreement between LPO and LAC was signed in October 2024. The changes are expected to support construction at Thacker Pass, which will be the only domestic source of lithium carbonate once operational. The facility aims to produce about 40,000 tonnes per year of battery-grade lithium carbonate for use in lithium-ion batteries.
The DOE emphasized that it reviews all applicants and borrowers carefully to ensure that taxpayer funds serve national interests.
