The U.S. Department of Energy has taken equity stakes in Canadian company Lithium Americas and its Nevada mining joint venture with General Motors as part of a renegotiation of a federal loan.

Under the new terms, the U.S. government will take a 5% equity ownership in Lithium Americas and a 5% ownership in the Lithium Americas-GM joint venture. The equity stakes will be acquired through no-cost warrants, which are financial instruments that give the government the right to purchase shares at a set price. The new terms came out of a renegotiation with the DOE’s Loan Programs Office over a $2.26 billion loan that was awarded to Lithium Americas under the Biden Administration.

Shares of Lithium Americas spiked 34% in after-hours trading.

The DOE said the equity stakes will serve as addit

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