Trump Seeks Stake in Lithium Americas Amid Share Surge

NEW YORK, NY — Shares of Lithium Americas (TSX, NYSE: LAC) surged more than 95% on Wednesday, following reports that the U.S. government is considering a stake in the company. The potential equity stake could reach as much as 10% in exchange for adjustments to a record loan finalized in 2024. The news sent the stock price soaring to $6.04, nearly double its value from the previous day, lifting the total market value to approximately $1.45 billion.

The rise in shares corresponds with discussions involving General Motors (NYSE: GM), the company’s partner in the Thacker Pass lithium project in Nevada. The two are currently negotiating the terms for accessing the first draw of federal funds, essential for financing construction at the site.

The Thacker Pass project, which was approved during the final days of Donald Trump’s presidency, holds North America’s largest known lithium deposit. It is anticipated to produce 40,000 tonnes of battery-quality lithium carbonate annually, enough for around 800,000 electric vehicles. The first phase of production is expected to conclude by late 2027, with full production set for 2028.

This project is vital for General Motors, which holds a 38% stake and saw its shares rise 2.5% during early trading. Lithium Americas indicated that funding from the U.S. Department of Energy would cover much of the investment needed for a processing facility at the mine.

However, concerns remain regarding Thacker Pass’s competitiveness against cheaper lithium produced in China. This has prompted Trump officials to collaborate with other companies, including MP Materials (NYSE: MP) and Intel, to bolster domestic manufacturing and minimize dependency on foreign supply chains.