Lithium Americas Soars 32% on Finalizing U.S. DOE Funding Deal
Agreement for $2.26 billion loan advances Thacker Pass project, a strategic asset for the domestic electric vehicle supply chain.
Shares of Lithium Americas (LAC) surged nearly 32% after the company announced it had reached a pivotal agreement with the U.S. Department of Energy (DOE) to fund the development of its Thacker Pass lithium project in Nevada. The deal unlocks a massive $2.26 billion loan, signaling a major step forward for what is anticipated to be the largest and most advanced lithium project in the United States.
The financing package, which includes an initial draw of $435 million, is a critical de-risking event for the project and a strong endorsement from the U.S. government. , underscoring the project's strategic importance to building a domestic supply chain for electric vehicle (EV) batteries.
This development solidifies the company's partnership with General Motors, which remains a cornerstone investor with a 38% interest in the joint venture and an offtake agreement to purchase a significant portion of the mine's future production. The government's direct financial involvement is seen by investors as a powerful validation of the Thacker Pass project's viability and its role in reducing American reliance on foreign critical minerals.
The market's reaction was immediate and pronounced, with the stock experiencing elevated trading volume as investors digested the news. While the government backing provides significant financial stability, , suggesting the sharp rally may have priced in much of the positive outlook. Concerns over shareholder dilution from the DOE's equity stake have also been noted.
Despite these concerns, the long-term strategic implications are substantial. The funding enables Lithium Americas to advance construction, with commercial production targeted for 2028. is positioned to become a key source of lithium for the burgeoning North American EV industry, aligning with national security and clean energy objectives. For investors, the agreement represents a major milestone, transforming a development-stage project into a tangible, federally-backed asset crucial for the future of American manufacturing.