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), to enhance protections for taxpayers and strengthen the domestic supply of lithium carbonate.
Under the revised terms, the federal government will receive 5% equity ownership in LAC through warrants, as well as an additional 5% ownership in the LAC/GM joint venture via warrants. The DOE’s Loan Programs Office (LPO) uses warrants as part of its collateral strategy to lower repayment risk for taxpayers. The new agreement also includes more than $100 million in new equity and several amendments designed to increase the resilience of the loan.
According to DOE 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 said. “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 restructured deal aims to support construction at Thacker Pass, which is expected to become a significant source of battery-grade lithium carbonate used in lithium-ion batteries. Once operational, it is projected that the facility will produce about 40,000 tonnes annually.
The DOE highlighted that using warrants as part of loan agreements is not new; this approach was previously applied in loans such as one provided to Tesla in 2010. The department stated it continues rigorous reviews of all applicants and borrowers to ensure taxpayer funds are allocated in ways that serve public interests.
