Catenaa, Wednesday, October 01, 2025- Lithium Americas stock surged over 25% after the US government said that it will be taking a 5% stake in one of the world’s largest lithium mines in northern Nevada.
The Department of Energy will take a 5% equity stake in the miner, which is based in Vancouver. It will also take a 5% stake in the Thacker Pass lithium mining project, a joint venture with General Motors.
Shares of Lithium Americas spiked more than 25% on Wednesday morning, and the stock is up by over 140% so far in the year.
Thacker Pass is considered crucial in reducing the US’s reliance on China for lithium, a critical material used to produce high-tech batteries for cell phones, electric vehicles, and renewable energy.
Both Republicans and Democrats support the project and efforts to narrow the production gap. China is the world’s largest lithium processor.
US Energy Secretary Chris Wright said in a statement that the deal with Lithium Americas “helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensuring better stewardship of American taxpayer dollars.”
Thacker Pass is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year in its first phase, enough to help power 800,000 EVs.
Lithium Americas said Wednesday that it reached a non-binding agreement in principle with the DOE to advance the first draw of $435 million on the federal loan. The DOE has agreed to defer $182 million of debt service over the first five years of the loan.
