US government takes a stake in Vancouver-based Lithium America
The US government is taking a minority stake in Lithium America, developing one of the largest Lithium mines in the world in North Nevada.
The Department of Energy will take five percent equity stake in Minor, which is located in Vancouver. The Thakr pass will also take a five percent stake in the lithium mining project, which is a joint venture with General Motors.
Lithium US shares increased more than 33 percent before the initial bell on Wednesday.
US Energy Secretary Chris Wright said in a statement that the deal with Lithium America helps reduce our dependence on foreign opponents by strengthening domestic supply chains and ensures better leadership of the US taxpayer. “
The thacker pass is considered important to reduce US Reliance on China for lithium, an important material used to produce high -tech batteries used in cellphones, electric vehicles, and renewable energy. Both Republican and Democrats support the project and reduce production differences. China is the world’s largest lithium processor.
The Thacker Pass is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year in its first phase, which is sufficient to help 800,000 EV.
Equity stake in Lithium America is the latest example of direct intervention by Trump administration with private companies.
The government is gaining 10 percent stake in Intel through transformation of billions of government funds and pledges already given.
The administration spent $ 400 million of taxpayer’s money in July to make the US government the largest owner in the Las Vegas rare meaning minor.
Trump signed a deal with NVidia and AMD and gave the US government a 15 percent reduction in revenue from selling some chips to China.
$ 182m adjourned to us loan service
Lithium US said on Wednesday that it reached a non-negotiable agreement with DOE to pursue the first draw of $ 435 million US on federal loans. The DOE has agreed to postpon the US $ 182 million US in the first five years of the loan.
The White House and Canadian Lithium America were proceeding with the deal later last month, as the two sides agreed to change the US federal debt of about $ 2.3 billion, which could allow the project to proceed to remove the silver-white metal used in the electric vehicle battery.
GM has promised more than $ 900 million US to help develop Thacar passes, which holds enough lithium to manufacture a million electric vehicles annually.
Dan Ewes, an analyst at Wesbash, said that the Thakar pass is a “large -scale opportunity” for the US to reduce the dependence on China and other foreign opponents for Lithium.
“Despite some of the largest accumulation, the US produced less than one percent of the global lithium supply, but the deal helps reduce dependence on foreign opponents for important minerals, ensure better stades of US taxpayers with lithium production to strengthen domestic supply chains and grow rapidly in the coming years.”
