The U.S. Department of Energy is planning to take a minority stake in Vancouver-based Lithium Americas, which is developing one of the largest lithium mines in the world in Nevada.

According to a September 30 release, the DOE has agreed in principle to receive a 5% stake in Lithium Americas in exchange for advancing $435 million of a $2.23 billion federal loan to the company, and deferring $182 million of that debt over the first five years of the loan. The DOE will also take a 5% stake in the Thacker Pass lithium mining project currently under development by Lithium America and General Motors in Nevada's Humboldt County. 

"Together, we are onshoring large-scale U.S. lithium production, strengthening America’s supply chain, creating exceptional jobs and enhancing our long-term energy security and prosperity," said Lithium Americas CEO Jonathan Evans.

The Thacker Pass project is scheduled to begin the first phase of operations in late 2027, and is expected to produce 40,000 metric tons of battery-quality lithium carbonate annually once its fully operational in 2028. Should it reach that capacity, it would be able to support the production of enough batteries for the equivalent of 800,000 electric vehicles each year.

The Trump administration has made it a priority to invest in domestic rare earth mining in recent months, as part of an initiative to reduce the United States' reliance on China. In mid-July, the U.S. Department of Defense agreed to buy $400 million worth of preferred stock in rare earth mine operator MP Materials, before loaning the company $150 million a month later.