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US DoE restructures deal with Lithium Americas for critical minerals
Yahoo Financeยท 2025-10-01 11:12
Core Points - The US Department of Energy (DoE) has restructured its deal with Lithium Americas Corporation (LAC) to acquire a 5% equity stake in the company and a separate 5% stake in the Thacker Pass lithium project joint venture with General Motors, aimed at countering China's control of the lithium market [1] - The restructuring was executed by the Loan Programs Office (LPO), which incorporated warrants into the collateral package for a loan, enhancing the loan's resilience and mitigating repayment risks for taxpayers [2] - The updated agreement includes over $100 million (C$139.28 million) in new equity to support the project [2] - The government's stake in the Thacker Pass project aligns with US President Donald Trump's agenda to secure access to North America's largest confirmed lithium deposit, with the US producing less than 1% of the global lithium supply [3] - The updated financial agreement aims to reduce dependence on foreign sources for critical minerals and strengthen domestic supply chains, fulfilling President Trump's promises [4] - The facility at Thacker Pass is projected to produce approximately 40,000 tonnes per year of battery-grade lithium carbonate, supporting lithium-ion battery manufacturing and contributing to the goal of onshoring production [5]