Lithium Americas Stock Surges 95% on Potential US Govt Loan
Shares soar on massive volume as the company confirms talks with the Department of Energy for a $2.26 billion loan to develop its Thacker Pass lithium mine.
Shares of Lithium Americas (LAC) skyrocketed Tuesday, closing with a staggering 95.6% gain after reports circulated about a pivotal federal loan for its Thacker Pass project in Nevada. The rally was fueled by trading volume more than 20 times the daily average, as the company confirmed it is in advanced discussions with the U.S. Department of Energy (DOE) for a $2.26 billion loan.
The potential financing is aimed at developing what is considered the , a critical step in building a domestic supply chain for electric vehicle (EV) batteries. In a statement, , acknowledging its ongoing engagement with the DOE's Loan Programs Office to finalize the terms of the loan, which would fund the construction of a processing plant at the Thacker Pass site.
The project is a cornerstone of the U.S. strategy to reduce its reliance on foreign nations for critical materials. General Motors is a key partner, having already invested significantly in the project and holding rights to the entirety of the mine's initial phase of production. The Thacker Pass facility is projected to produce enough lithium carbonate to support the manufacturing of up to 800,000 EVs annually once fully operational.
While the loan received conditional commitment under the previous administration, recent reports indicate it is undergoing a re-evaluation. According to a , the DOE is now pushing for a more binding offtake agreement from GM to mitigate market risks, a development that adds a layer of complexity to the deal's finalization.
Investors, however, reacted with overwhelming optimism, betting that the loan's strategic importance to the national EV supply chain will ensure its approval. The massive stock surge reflects the transformative potential of the government funding, which would de-risk the project substantially and accelerate Lithium Americas' path to becoming a major player in the global lithium market. The outcome of the ongoing negotiations with the DOE remains the key catalyst for the company's future.