Trump Administration Reviews $2.3B Loan for Lithium Americas’ Thacker Pass Mine Amid Market Concerns
The Trump administration is reassessing a $2.3 billion loan previously approved under President Joe Biden to support development of Lithium Americas Corp.’s Thacker Pass project in Nevada, one of the largest known lithium deposits in the United States.
The loan, finalized in 2024, was expected to fund most of the construction costs for a processing plant at the site.
The review by the Department of Energy (DOE) follows concerns raised by Greg Beard, a senior advisor in the Loan Programs Office, who cautioned that the project could struggle to secure customers given competition from cheaper Chinese lithium, according to reporting by the Washington Free Beacon.
As part of the reassessment, the DOE is reportedly pressuring General Motors (GM)—which owns a 38% stake in the mine—to finalize a binding offtake agreement to guarantee demand for Thacker Pass output. GM invested $625 million in the project last December through cash and letters of credit.
DOE and Industry Responses
The DOE said in a statement it is working “to ensure our limited taxpayer resources are used to advance the best interests of the American people and generate a return on investment.”
GM, meanwhile, underscored the loan’s importance.
“During his first term President Trump strongly supported the development of Nevada’s Thacker Pass mine,” a GM spokesperson said. “We’re confident in the project, which supports the administration’s goals, and have committed almost $1 billion to its development, including a nearly $200 million letter of credit.”
Tim Crowley, head of government affairs at Lithium Americas, added that the company continues to collaborate with both the DOE and GM “toward first draw on the DOE loan” and will provide updates when appropriate.
The re-evaluation comes as the Energy Department conducts a broader review of loans and guarantees issued under its $400 billion green bank program, which has been a cornerstone of U.S. efforts to finance clean energy and critical minerals projects.
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