US seeks up to 10% stake in Lithium Americas in DOE loan talks

The Trump administration is seeking up to a 10 percent equity stake in Lithium Americas as part of renegotiations over a roughly 2.26 billion dollar Department of Energy loan backing the companys Thacker Pass lithium project in northern Nevada, people familiar with the discussions said. The talks, which are ongoing, include proposals for equity, changes to repayment terms and demands that project partner General Motors provide firmer offtake guarantees or cede some operational control, according to those sources.

The proposed intervention comes as officials reassess the 24 year loan amid concern that soft lithium prices driven by global oversupply, particularly from China, could undermine Lithium Americas ability to repay. Company representatives have offered the government no cost warrants that would convert into common shares; reports on the size of that offer vary, with some sources describing warrants equivalent to roughly 5 percent of shares and others saying the administration is pressing for up to 10 percent. Company and government negotiators have not disclosed final terms.

Thacker Pass, which Lithium Americas is developing with backing from General Motors, is expected...