Mineral supply chain ownership

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Lithium Americas soars 65% as Trump administration seeks equity stake in Canadian miner
CNBCยท 2025-09-24 13:16
Core Viewpoint - The Trump administration is seeking an equity stake in Lithium Americas as the company renegotiates a $2.2 billion loan from the Department of Energy for its Thacker Pass mine, leading to a significant surge in the company's stock price [1][2]. Group 1: Government Involvement - The White House's move represents a direct ownership interest in the mineral supply chain, marking the first equity stake proposed for a Canadian company [2]. - The Department of Defense previously took a 15% equity stake in MP Materials, which has seen its shares more than double since the deal [2]. Group 2: Project Details - Thacker Pass in northern Nevada is anticipated to be one of the largest lithium sources in North America, with General Motors agreeing to purchase offtake from the mine [3]. - Lithium Americas is renegotiating the loan terms due to not meeting conditions for the initial disbursement, requesting to extend part of the loan repayment into later years [3][4]. Group 3: Negotiation Context - The administration's interest in an equity stake aims to create a cash buffer and mitigate risks for taxpayers as part of the loan repayment extension [4]. - Discussions regarding the investment are positive, although a deal has not yet been finalized, and Canadian approval may be required due to the company's jurisdiction [4]. Group 4: Strategic Considerations - The Trump administration's consideration of equity stakes in mining companies is a strategy to support them against state-sponsored competition from China [5].