The photo above shows the underground of a mine.

According to Reuters, President Trump wants the United States to own a share of the company in charge of America’s biggest lithium mine.

He wants an equity stake in this as he does in all industries he feels are critical for national security. Thacker Pass mine will be key to the US lithium supply chain. GM invested 625 million and holds 38% of the stake in the Nevada project.

President Trump seeks an equity stake of as much as 10% in lithium as he negotiates terms of the company’s $2.26 billion energy department loan for the Thacker Pass lithium project with General Motors.

This is the latest effort by the Trump administration to intervene directly in the American economy as it takes stakes in Intel,  MP materials, and other US tax and minerals firms to promote industries it sees as critical to national security.

Critics feel strongly that it is dangerous for a government to own any part of private industry. It sets a precedent, and the government cannot be trusted. However, given the critical nature of lithium, it seems justified.

Thacker Pass will become the Western Hemisphere’s largest source of lithium when it opens in 2028.

Thacker Pass is the linchpin in building a domestic supply chain as part of Washington’s long-standing drive to boost US production of lithium. It’s key to making batteries for electric vehicles and other electronics.

Thacker Pass owes the US Treasury money for their loan, but the administration is concerned that they can’t pay the loan. That led to renegotiating the terms of the loan by giving the administration a stake.

“President Trump supports this project. He wants to succeed and also be fair to taxpayers, “a White House official told voters. “But there’s no such thing as free money. “

Shares of Lithium America’s rose by roughly 80% from around three dollars a share to $5.50 for a share and aftermarket trading following this news.

Democrats and Republicans currently agree this is a key way to boost US critical minerals production and cut reliance on China. The US produces less than 5000 metric tons of lithium at a Nevada facility owned by Albemar.

Thacker Pass’s first phase is expected to produce 40,000 metric tons of battery quality lithium carbonate per year. It’s enough for 800,000 EVS.

China is dominant in the industry and produces more than 40,000 metric tons each year and is the third largest producer after Australia and Chile. China’s influence is far greater in refining and processes over 75% of the world‘s lithium into battery grade material.