The U.S. government is making investments in British Columbia (B.C.) mining firms to lessen its dependency on China for crucial minerals essential in manufacturing advanced batteries for smartphones, electric cars, and renewable energy sources. Recently, the White House declared its acquisition of a 10% stake in Vancouver-based Trilogy Metals Inc., which possesses mining assets in Alaska that the U.S. government aims to develop. This investment, priced at $35.6 million US, includes options for potential future increases, pending regulatory and other approvals.
In tandem with this move, President Donald Trump issued an executive order directing the construction of a road in Alaska to provide access to the Ambler mining region, known for its copper reserves where Trilogy Metals holds a stake via a joint venture. The Ambler Road project, initially approved during the first Trump administration, faced opposition from the Biden administration due to concerns about its impact on wildlife, particularly caribou, and Indigenous communities reliant on hunting and fishing.
Trilogy Metals CEO Tony Giardini hailed the partnership with the U.S. government as a significant advancement, emphasizing its role in fostering a secure domestic supply chain for critical minerals in Alaska. U.S. Interior Secretary Doug Burgum asserted that this investment was vital for securing critical mineral resources, noting the strategic importance of Trilogy’s Upper Kobuk Mineral Projects in advancing U.S. energy, technology, and national security interests.
Furthermore, the U.S. government has taken a minority stake in Lithium Americas, another Vancouver-based company operating one of the world’s largest lithium mines in Nevada. The Department of Energy (DOE) will hold a 5% equity stake in the company and in the Thacker Pass lithium mining project, a collaborative effort with General Motors. Thacker Pass is pivotal in reducing the U.S.’s reliance on China for lithium, with bipartisan support for the project aimed at bridging the production gap with China, the leading global lithium processor.
Secretary of Energy Chris Wright highlighted the deal with Lithium Americas as a step towards reducing dependence on foreign mineral sources and bolstering domestic supply chains, ensuring better utilization of American taxpayers’ funds. Thacker Pass is forecasted to yield 40,000 tonnes of battery-grade lithium carbonate annually in its initial phase, sufficient to power around 800,000 electric vehicles. The partnership between the White House and Lithium Americas has progressed positively, with agreements reached on modifications to a substantial federal loan, facilitating progress in extracting the metal crucial for EV batteries.
Following the announcements of these agreements, shares in both Canadian mining companies experienced a surge in value. Lithium Americas witnessed a surge of over 30% in share price upon the partnership revelation, while Trilogy Metals Inc. saw a more than threefold increase in early trading on Tuesday. Trilogy’s shares traded at $10.79, marking a significant rise of $7.86 on the Toronto Stock Exchange.