Lithium Americas Surges 23% on US Govt Investment Deal
Department of Energy takes 5% stake and advances $435M loan for pivotal Thacker Pass lithium project, boosting domestic EV supply chain.
Lithium Americas (LAC) shares surged more than 23% after the U.S. government finalized a deal to become a direct stakeholder in the company's Thacker Pass project, a move aimed at securing a domestic supply of critical materials for electric vehicles.
The Department of Energy (DOE) has advanced the first $435 million tranche of a conditional $2.26 billion federal loan. As part of the landmark agreement, the government will also take a 5% equity stake in Lithium Americas, signaling strong federal backing for the Nevada-based mine, which is poised to become the largest lithium source in the Western Hemisphere.
The investment is a cornerstone of Washington's strategy to reduce its reliance on China for the processing of critical minerals. The Thacker Pass project is central to building a robust domestic supply chain for EV batteries. , with Phase 1 production targeting 40,000 metric tons of battery-grade lithium carbonate annually—enough to power approximately 800,000 electric vehicles.
Investors reacted swiftly to the news, sending LAC shares up 23.11% on trading volume more than 10 times the daily average. This rally builds on previous gains seen when reports of a potential federal equity stake first surfaced. The placed on the project, which is being developed as a joint venture with automaker General Motors (GM).
Construction at Thacker Pass is already underway, with initial production scheduled to begin in late 2027 and full commercial output expected in 2028. The government's direct financial commitment underscores the project's significance not just for Lithium Americas, but for the broader .