The Department of Energy will take a 5% equity stake in the miner, which is based in Vancouver. It will also take a 5% stake in the Thacker Pass lithium mining project, a joint venture with General Motors.

Thacker Pass is considered crucial in reducing U.S. reliance on China for lithium, a critical material used to produce the high tech batteries used in cell phones, electric vehicles and renewable energy. Both Republicans and Democrats support the project and narrowing the production gap. China is the world’s largest lithium processor.

U.S. Energy Secretary Chris Wright said in a statement that the deal with Lithium Americas “helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars.”

Thacker Pass is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year in its first phase, enough to help power 800,000 EVs.

The equity stake in Lithium Americas is the latest example of the direct intervention by the Trump administration with private companies. The government is getting a 10% stake in Intel through the conversion of billions in previously granted government funds and pledges. The administration spent $400 million of taxpayer money in July on MP Materials stock to make the U.S government the biggest owner in the Las Vegas rare earths miner. Trump also made a deal with Nvidia and AMD to give the U.S. government a 15% cut of revenue from selling certain chips to China.

Lithium Americas said Wednesday that it reached a non-binding agreement in principle with the DOE to advance the first draw of $435 million on the federal loan. The DOE has agreed to defer $182 million of debt service over the first five years of the loan.

The White House and Canada’s Lithium Americas seemed to be moving forward with the deal late last month, as both parties agreed on changes to an approximately $2.3 billion federal loan that could allow the project to move forward to extract the silver-white metal used in electric vehicle batteries. GM has pledged more than $900 million to help develop Thacker Pass, which holds enough lithium to build 1 million electric vehicles annually.

Dan Ives, an analyst with Wedbush, called Thacker Pass is a “massive opportunity” for the U.S. to reduce its reliance on China and other foreign adversaries for lithium.

“Despite having some of the largest deposits, the U.S. produced less than 1% of the global lithium supply but this deal helps reduce dependence on foreign adversaries for critical minerals strengthening domestic supply chains and ensuring better stewardship of American taxpayer dollars with lithium production set to grow exponentially over the coming years,” he wrote.

Shares of Lithium Americas spiked more than 30% Wednesday.