Did you know that the U.S. government is about to dip its toes into one of the most crucial lithium mines in North America? In a surprising turn of events, the White House is moving forward with a deal that would grant the U.S. a small equity stake in a Canadian company responsible for developing a massive lithium mine in northern Nevada.

The Department of Energy has struck an agreement with Lithium Americas, the company behind the proposed Thacker Pass lithium mine, located about 200 miles north of Reno. This mine is not just any mine; it’s anticipated to be one of the world’s largest, capable of extracting the critical silver-white metal essential for electric vehicle batteries. In fact, General Motors has already pledged over $900 million to help bring this project to fruition, which could ultimately yield enough lithium to manufacture one million electric vehicles every single year.

This equity stake represents the latest move by the Trump administration to directly engage with private companies. Previously, the government secured a 10% stake in Intel, converting billions in government funds, and even spent $400 million of taxpayer money on MP Materials stock, making the U.S. the largest stakeholder in the Las Vegas rare earths miner. In another bold deal, Trump negotiated with Nvidia and AMD to receive a 15% cut of revenue from specific chip sales to China. So, is this new venture with Lithium Americas groundbreaking or just another step in the same direction?

A White House official, who spoke on the condition of anonymity, indicated that the exact size of the U.S. stake in Lithium Americas would be “very small”—under 10%—and primarily serve as a “cash buffer” for the company. Lithium Americas has approached the Energy Department to restructure a $2.3 billion federal loan approved under the Biden administration.

“We support the project moving forward,” said the official, emphasizing the importance of critical minerals like lithium in bolstering the U.S. economy and restoring domestic manufacturing. The message is clear: “We’re trying to do this in a way that is fair to the taxpayers. We don’t believe in free money.”

Although a spokesperson for Lithium Americas declined to comment, the company has shared that it is actively discussing the loan specifics with the DOE and GM. The discussions revolve around conditions necessary to draw on the DOE loan and any potential additional requirements the DOE may have.

For their part, GM remains optimistic about the project, confirming their confidence without delving into negotiation details. The Thacker Pass project is viewed as a vital part of establishing a domestic supply chain for electric vehicle batteries and other electronics. Interestingly, this development has garnered support from both sides of the political aisle, with both Trump and Biden seeing the mine as a path to reduce reliance on China, the dominant player in the lithium processing industry.

Expected to produce around 40,000 metric tons of battery-quality lithium carbonate annually in its first phase, Thacker Pass could help power 800,000 electric vehicles. However, environmental groups and leaders of three Native American tribes have been pushing back against the mine, citing its proximity to a site of historical significance—a massacre of over two dozen Native Americans in 1865.

The Biden administration has backed the project, viewing it as part of a larger strategy to combat climate change by accelerating the transition from fossil fuels. In stark contrast, Trump recently dismissed climate change as a “con job” during a speech at the United Nations, warning that the nation risks failing if it doesn’t abandon what he terms the “green energy scam.”

As the U.S. electric vehicle market faces challenges—particularly with sales slowing amid concerns over charging infrastructure and vehicle affordability—the new lithium project represents both hope and hurdles. A recent law passed by congressional Republicans, which phases out federal incentives for EV purchases, could further complicate the landscape. With consumers rushing to take advantage of existing credits before they expire, the future for automakers is uncertain without these financial incentives.

Beyond powering vehicles, lithium is a vital component in various sectors, including electronics, pharmaceuticals, and renewable energy storage. The stakes are high, and the implications of this deal could reshape the future of green technology in the United States.