Lithium Americas in Loan Talks With DOE, General Motors

By Adriano Marchese

Lithium Americas is in talks with the U.S. Department of Energy and General Motors over the terms of its $2.26 billion government loan for its large lithium project in Nevada.

The talks cover requirements that must be met before the financing can be used, details of the loan itself, as well as new requests from the DOE that could add conditions or alter its terms, the Canadian miner said. GM, a partner in the project, is participating in the discussions.

Lithium Americas was awarded the loan under the Advanced Technology Vehicles Manufacturing program to help build out the processing facilities at Thacker Pass, which is among the largest known lithium deposits in the U.S.

But the project has come under scrutiny. Earlier this month, a DOE official questioned its viability and administration officials have raised concerns about the company's ability to repay the loan given low lithium prices.

The miner said it could be forced to shut down operations without clarity on the loan.

The negotiations come as Reuters reported that the U.S. government is considering taking up to a 10% equity stake in Lithium Americas. The news sent shares up 70% after hours Tuesday and they were recently 73% higher in premarket trading Wednesday at $5.28.

Lithium, a critical mineral used in electric vehicle batteries, smartphones and renewable energy storage, has become a priority for the U.S. as it seeks to cut reliance on foreign suppliers.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 24, 2025 07:53 ET (11:53 GMT)