WASHINGTON (AP) — The White House is pushing ahead with an agreement that would allow the U.S. government to acquire a minor ownership in a Canadian company working on one of the world’s largest lithium projects located in northern Nevada, according to a government official.

The Department of Energy and Lithium Americas, which is leading the Thacker Pass lithium mine and processing initiative about 200 miles north of Reno, have reached new terms on a $2.3 billion federal loan. These updates could help move the project forward by supporting the extraction of lithium—a key component in electric vehicle batteries. General Motors has committed over $900 million toward the development of Thacker Pass, which aims to supply enough lithium for a million electric vehicles each year.

The potential U.S. equity in Vancouver-based Lithium Americas marks another instance of the federal government taking a direct role in strategic industries. As seen before, the government secured a 10% share in Intel through converted financial support, and invested $400 million in MP Materials, making it the top shareholder in the company that mines rare earth minerals. It also negotiated a deal with Nvidia and AMD to claim a 15% revenue share from certain chip sales to China.

A White House official, speaking anonymously about the still-pending deal, declined to share the exact percentage of U.S. ownership in Lithium Americas. However, the stake will be “very small” — under 10% — and is intended to provide financial stability for the company. The firm requested the Department of Energy to modify the loan previously authorized by the Biden administration.

“We support the project progressing,” said the official. “Access to critical resources like lithium is essential for boosting the U.S. economy and reviving domestic manufacturing. We’re working to achieve that in a fiscally responsible way. We don’t believe in handouts.”

While a spokesperson for Lithium Americas did not comment, the company stated it is in talks with the Department of Energy and General Motors regarding the loan terms.

“The discussions involve requirements that must be met before drawing on the DOE loan and other related conditions,” the company noted.

Jim Cain, a GM spokesperson, affirmed the company’s continued confidence in the project but declined to provide details on the ongoing negotiations.

Thacker Pass is viewed as a vital part of building a reliable domestic supply chain for batteries used in electric vehicles and other technologies. The project finds rare bipartisan support as both Republican and Democratic leaders see it as a way to increase access to critical mineral resources and reduce dependence on China, the largest lithium processor worldwide.

During its initial stage, Thacker Pass is projected to yield 40,000 metric tons of high-grade lithium carbonate annually—enough for around 800,000 electric vehicles.

However, the mine has faced years of organized resistance from environmental groups and tribal leaders. Opponents argue the site lies close to a historically significant area where over two dozen Native Americans were killed in 1865.

The Biden administration’s Department of Energy supports the mine, viewing it as part of efforts to combat climate change by accelerating the transition away from fossil fuels.

Former President Donald Trump, however, has expressed skepticism toward climate initiatives, recently calling global warming “the greatest con job” during a speech at the United Nations. He warned that reliance on green energy would harm national economies.

The renewed push to support domestic lithium production comes as the market for electric vehicles experiences a slowdown. Manufacturers are finding it more difficult to appeal to average consumers concerned about charging access and cost.

Further complicating matters, a law passed by Republican lawmakers and signed by Trump could hinder EV adoption. The legislation, enacted this summer, ends federal tax credits for new and used electric vehicles at the end of the month.

Buyers have rushed to take advantage of the incentives—worth up to $7,500—before they expire. Without these credits, many automakers fear falling sales in the EV market.

In addition to powering cars, phones, and consumer electronics, lithium is also used in producing glass, pharmaceuticals, and chemicals. Lithium batteries also help store energy from renewable sources such as wind and solar.

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Reporting by Alexa St. John in Detroit contributed to this story.