The Trump administration, despite its rhetoric on the “green new scam,” is reportedly seeking a significant stake in what promises to be the largest lithium mine in the Western Hemisphere. According to a White House official who spoke with Reuters, the administration is asking for as much as 10% equity in Lithium Americas, the company behind the project, in exchange for renegotiating the repayment period of a $2.26 billion Department of Energy (DOE) loan. The official stated, “President Trump supports this project. He wants it to succeed and also be fair to taxpayers, but there’s no such thing as free money.” This move is the latest in a string of negotiations that have also given the U.S. government stakes in companies like Intel and MP Materials.
A Key Player in the EV Supply Chain
Lithium Americas is developing the Thacker Pass mine in Nevada. The first phase of the project is expected to produce enough lithium to make as many as 800,000 electric vehicles per year. The permit for the project was approved by President Trump at the end of his first term, and the loan was awarded by the DOE’s Loan Program Office under the Biden administration.
GM is a major investor in the company, having bought a 38% stake in Lithium Americas last year for $625 million. The deal also gave the automaker the right to purchase all of the lithium produced in the first phase of the mine and for 20 years of the second phase, which would be enough for 1.6 million EVs over the next two decades. The Trump administration is reportedly asking GM to guarantee these purchases, even as it works to thwart the transition to electric vehicles.
Author’s Opinion
This move represents a new and aggressive form of government industrial policy. While the administration’s rhetoric may be anti-“green new scam,” its actions—acquiring stakes in companies like Lithium Americas—show a pragmatic desire to secure critical resources for the American economy. By using the power of a government loan as leverage, the administration is blurring the lines between a free market and state-directed capitalism, a trend that could have significant implications for the relationship between the government and the private sector. It suggests a future where the government may become a more direct player in the market, not just a regulator or a tax collector, but an active investor with a vested interest in the success of key industries.
Featured image credit: Андрей Сизов via Unsplash
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