The US Government is taking efforts in Canadian lithium mines and its nevada -mining project

The US Ministry of Energy has taken an equivalent investment in the Canadian company Lithium Americas and its Nevada Mining Joint Venture with General Motors as part of a renegotiation of a federal loan.

Under the new terms, the US government will take a 5% shareholding in Lithium America and a 5% ownership in Lithium Americas-GM Joint Venture. Equity Stakes will be acquired via warrants at no cost, which are financial instruments that give the government the right to buy shares at a fixed price. The new terms came out of a renegotiation with Doe’s Loan Program Office of a $ 2.26 billion loan that was awarded Lithium America during the Biden administration.

Shares of Lithium Americas spiked 34% in trade after hours.

Doe said the share efforts will serve as additional security on the loan, which helps reduce repayment risk to taxpayers. Lithium is an important chemical element used in the batteries of electric vehicles and smartphones.

“Despite having some of the major deposits, the United States produces less than 1% percent of the global supply of lithium. Thanks to President Trump’s bold leadership, US lithium production will skyrocket,” US energy secretary Chris Wright will in a press release. “Today’s message helps reduce our dependence on foreign opponents of critical minerals by strengthening domestic supply chains and ensuring better management of US taxpayers dollars. President Trump promised to do both and he delivers.”

Message Tuesday is the latest action from the Trump administration to take ownership in companies. The Trump administration has announced plans to take a proportion of 10% in Intel and MP materials that operate a rare land mineral in the United States.

Lithium Americas develops Thacker Pass Mine in Nevada, which is expected to produce enough lithium to manufacture as many as 800,000 electric vehicles a year in the first phase. President Trump approved the permit for the project in January 2021, at the end of his first period.

GM Bough a 38% share in Lithium Americas last year for $ 625 million, giving the carmaker the right to buy the unit in the first production phase and lithium from the mine for 20 years in the second phase. In total, it would be enough lithium for 1.6 million EVs over the next two decades.