Highlights

• Thacker Pass lithium mine in Nevada represents the largest known lithium deposit in the US, with the potential to supply up to 25% of global lithium demand.
• The Trump administration is exploring a potential 10% government equity stake in Lithium Americas, marking a strategic move in domestic critical minerals production.
• The project signals a broader US industrial policy trend of direct government investment in strategic supply chain assets for national security.

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The Daily Upside reports that the Trump administration is weighing a U.S. government equity stake of up to 10% in Lithium Americas, the Canadian firm building the massive Thacker Pass lithium mine in Nevada. The move would reshape a $2.2 billion Department of Energy loan package and mirror past government interventions in Intel and MP Materials. Markets reacted sharply: Lithium Americas’ stock nearly doubled on the news.

The Thacker Pass lithium mine is a lithium clay mining development project in Humboldt County, Nevada, which is the largest known lithium deposit in the US and one of the largest in the world, and is believed by some to have the potential to supply up to 25% of the world's lithium demand.

Thacker Pass

Solid Ground: The Facts That Hold

It is accurate that Lithium Americas is developing Thacker Pass, the largest known lithium deposit in the U.S., with output projected at 40,000 tons of battery-grade lithium annually starting in 2027. General Motors already invested $625 million for a 38% stake and locked up 20 years of supply from Phase 1. The U.S., meanwhile, produces only about 5,000 tons per year from Albemarle’s Silver Peak operation, making new domestic production essential if Washington wants to loosen China’s grip on refining (70% of global share). These numbers are consistent with filings, DOE reports, and corporate disclosures.

Where the Dust Kicks Up

This recent account hints that Washington’s stake is a sure thing. That is speculative. Negotiations over a DOE loan restructuring are real, but equity participation and a GM-backed offtake guarantee are not finalized. Political timing also clouds the picture—administration officials may want to showcase industrial wins ahead of an election year. Treat the 10% stake as under discussion, not secured.

Another stretch: the framing of Thacker Pass as flipping global balance “like a pancake.” Even at full Phase 1 capacity, Thacker Pass would not eclipse China’s refining dominance. It would, however, mark a critical domestic anchor project, symbolically and strategically significant.

The Spin Behind the Story

Bias leans toward triumphalism, not surprisingly.  And of cours,e Rare Earth Exchanges (REEx) absolutely supports the march toward rare earth element resilience.   This particular narrative folds lithium neatly into a “national interest” arc alongside chips and rare earths. And of cours,e this is true in part—critical minerals are security assets—but the story downplays messy realities investors should not ignore from remaining permitting challenges, water usage lawsuits, and EV demand uncertainty as U.S. tax credits phase out not to mention a confluence of other execution factors.

Why Rare Earth Exchanges Readers Should Care

This isn’t just about lithium. The U.S.government’s willingness to take equity stakes—first in MPMaterials, now possibly in Lithium Americas—signals a shift from loan guarantees to direct ownership of supply-chain assets. That precedent matters for rare earths and in the possibility of a deal for Thacker Pass, critical minerals, where similar moves could underpin magnet-to-missile supply chains. If Thacker Pass sets the tone, rare earth developers should expect more activist U.S. capital on the horizon.

Bottom Line

The facts around Thacker Pass are solid; the government stake is still speculative. Investors should parse the headlines carefully: the real story is Washington’s deeper embrace of industrial policy, with more rare earths next in line. And as our REEx community knows, deeper more intensive industrial policy becomes necessary.

Source: The Daily Upside (opens in a new tab), Sept. 25, 2025.

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