The U.S. Department of Energy (DOE) has announced a revised agreement with Lithium Americas Corp. (LAC), supported by General Motors (GM), aimed at strengthening protections for taxpayers and advancing domestic production of lithium carbonate.
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 to help reduce repayment risk on loans, providing added security for public funds. The renegotiated deal also introduces more than $100 million in new equity and includes amendments designed to improve loan resilience.
According to U.S. Energy 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.” He added, “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 loan agreement between LPO and LAC was signed in October 2024. With these changes, funding will support construction at Thacker Pass, which is projected to produce about 40,000 tonnes per year of battery-grade lithium carbonate once operational. This output will contribute to building lithium-ion batteries and aligns with efforts to move supply chains back into the United States.
Warrants have been used previously by LPO as part of its collateral strategy on loans—such as with Tesla in 2010—to safeguard taxpayer interests. The DOE states it continues to review every applicant and borrower carefully so that taxpayer resources are directed toward projects serving national priorities.
###
