The U.S. Department of Energy (DOE) has acquired a 5% equity stake in Canadian lithium company Lithium Americas and its joint venture with General Motors (GM) as part of a renegotiated federal loan agreement. This equity acquisition, made through no-cost warrants, is intended to serve as collateral for a $2.26 billion loan initially awarded to Lithium Americas. The DOE's initiative aims to bolster domestic lithium production, which is vital for electric vehicle batteries, as the U.S. currently produces less than 1% of the global lithium supply. The announcement has led to a 34% spike in Lithium Americas' shares. This move is part of a broader strategy by the Trump administration to secure ownership stakes in companies involved in critical minerals, thereby reducing dependence on foreign sources and ensuring better management of taxpayer funds.