Lithium Rush: U. S. Eyes Stake in Canadian Mining Firm
The U.S. government is in discussions with Lithium Americas, a Canadian company, about taking an equity stake. This comes as they renegotiate a significant loan for a mine in Nevada.
Stock Surge
Lithium Americas' stock more than doubled in a day following the news. The company's value now stands at approximately $1.5 billion.
Not the First Time
This isn't the U.S. government's first foray into mining investments. They already hold a stake in MP Materials.
Thacker Pass Mine
The mine in question, Thacker Pass, is poised to be a major lithium source in North America. Lithium is crucial for manufacturing electric vehicle batteries.
- General Motors is also involved, holding a stake and planning to purchase lithium from the mine once operational.
Loan Renegotiation
The loan for Thacker Pass needed renegotiation due to unmet initial terms. The U.S. government is seeking an equity stake in exchange for deferring some loan repayments, aiming to reduce taxpayer risk.
Deal Details
- A final agreement is yet to be reached, but talks are progressing well.
- The U.S. supports the project.
- Approval from Canada may be required since Lithium Americas is a Canadian company.
Confirmations
Lithium Americas has confirmed talks with the U.S. Department of Energy and GM. However, GM has remained relatively silent on the matter.