Lithium Americas Stock Soars on US Government Stake Report

Shares of Lithium Americas Corp. (LAC) skyrocketed in pre-market trading, jumping nearly 68% after reports emerged that the Trump administration is considering taking a significant equity stake in the mining company.

The potential investment is linked to the renegotiation of a $2.3 billion Department of Energy loan intended to develop the Thacker Pass lithium project in Nevada, which is poised to become the largest source of lithium in the United States. as a condition of the revised loan agreement.

This move signals a strong push by the administration to secure domestic supply chains for critical minerals, reducing the nation's reliance on foreign suppliers like China, which currently dominates the global lithium market. The Thacker Pass mine is considered a cornerstone of America's strategy to build a self-sufficient supply chain for electric vehicle (EV) batteries and is viewed as a matter of national security.

Talks to revise the loan terms were initiated due to concerns over the company's ability to service the debt amid falling global lithium prices. In response, equivalent to 5% to 10% of its common shares, a move that would give the U.S. government a direct share in the project's success.

The deal also involves General Motors (GM), which has already invested $625 million in the Thacker Pass project and holds rights to a significant portion of its future output. Trump administration officials are reportedly pressing GM to guarantee its purchase commitments to ensure the mine's financial viability. This potential government partnership underscores the strategic importance of the project, following similar federal investments in companies like Intel and MP Materials, which are also deemed critical to national security interests. The sent a clear bullish signal to investors, who see the government's involvement as a major de-risking event for the ambitious project.