US Buys Into Nevada Lithium Mine in Push to Cut China Dependence

The United States government is taking a direct role in the future of critical minerals by acquiring a stake in a major lithium mining project in Nevada. Officials confirmed on Wednesday that the Department of Energy will hold a minority interest in Lithium Americas, a Canadian company spearheading one of the world’s largest lithium developments.

The deal gives Washington a 5 percent equity stake in Lithium Americas and a matching 5 percent stake in the Thacker Pass project, a joint venture with General Motors. Located in northern Nevada, Thacker Pass has been described as a key pillar of America’s effort to secure domestic supplies of lithium, a resource at the heart of modern battery technology.

Lithium is essential for powering electric vehicles, renewable energy systems, and a wide range of consumer electronics. At present, China controls the processing of most of the world’s lithium, leaving the United States heavily dependent on foreign supply chains. By investing directly in a U.S.-based project, officials hope to close that gap.

The Thacker Pass mine is projected to produce 40,000 tonnes of battery-quality lithium carbonate annually in its first phase. That volume would be sufficient to power up to 800,000 electric vehicles, a figure that underscores the mine’s potential impact on America’s clean energy goals.

Energy Secretary Chris Wright said the move demonstrates a commitment to both energy security and fiscal responsibility. In a statement, he argued that strengthening supply chains at home “reduces reliance on foreign adversaries for critical minerals and ensures better stewardship of taxpayer dollars.”

The decision comes at a time of rare bipartisan consensus in Washington. Both Republican and Democratic lawmakers have supported efforts to bolster domestic production of strategic minerals, arguing that dependence on China poses long-term economic and national security risks.

Lithium Americas, which is based in Vancouver, announced that it has reached a nonbinding agreement with the Department of Energy to advance an initial draw of $435 million from a federal loan facility. As part of the arrangement, the government has agreed to defer $182 million in debt service during the first five years of the loan.

The U.S. government’s equity stake in Lithium Americas follows a broader pattern of direct involvement in industries considered vital to national interests. In recent months, the Trump administration has converted billions in prior grants into a 10 percent ownership share of Intel. That move positioned Washington as a direct player in the semiconductor industry.

In July, the government also spent $400 million on MP Materials stock, making it the largest single shareholder of the Las Vegas-based rare earth miner. Officials described the investment as a way to safeguard access to materials vital for defense and advanced technologies.

The administration has further negotiated deals with major chipmakers Nvidia and AMD, granting the government a 15 percent cut of revenues from certain sales to China. These measures reflect an increasingly interventionist approach in sectors tied to national security and technological competition.

Supporters of the Thacker Pass project argue that it represents not only an economic opportunity but also a strategic imperative. With electric vehicle adoption accelerating and global demand for lithium surging, securing reliable supplies at home has become a central policy priority.

Critics, however, have voiced concerns over environmental impacts, pointing to the scale of the project and its potential effect on local ecosystems. Lithium mining is resource-intensive, and communities in Nevada have raised questions about water usage and land disruption.

Despite those concerns, lawmakers from both parties have emphasized the importance of moving ahead. The prospect of job creation and the role of the mine in advancing clean energy targets have helped the project maintain political momentum.

For General Motors, which is partnering with Lithium Americas at Thacker Pass, the project is a direct investment in the future of electric mobility. GM has announced aggressive plans to expand its lineup of electric vehicles and sees a secure lithium supply as critical to meeting production goals.

The Nevada project is expected to roll out in phases, with additional capacity planned after the initial 40,000 tonnes of output. If fully developed, Thacker Pass could become one of the largest lithium operations in the world.

For Washington, the investment signals a clear message: the government is prepared to use public funds and ownership stakes to ensure that the United States does not fall behind in the race for critical minerals. With demand for lithium rising globally, the deal marks a new chapter in America’s industrial and energy strategy.