Lithium Americas shares soar 95% on Trump stake report

[Ben Graham]

Shares in Lithium Americas (TSX, NYSE: LAC) almost doubled their price on Wednesday, jumping more than 95% mid-afternoon in New York on reports that the US government may seek a stake in the Canadian miner.

The company confirmed it is in discussions with the US Department of Energy and its partner in the Thacker Pass lithium project in Nevada, General Motors (NYSE: GM), about conditions for the first draw of a $2.3 billion loan, which will help finance construction at its site.

Reuters reported late on Tuesday the Trump administration was weighing a potential equity stake of as much as 10% in exchange for adjusting the terms of the record loan, finalized in 2024.

Trump wants piece of company in charge of America’s biggest lithium mine

Thacker Pass, approved in the final days of Donald Trump’s first presidency, is home to North America’s largest known lithium deposit. Phase 1 is expected to produce 40,000 tonnes of battery-quality lithium carbonate annually, which is enough for about 800,000 electric vehicles, with completion targeted for late 2027.

Full production is slated for 2028, positioning the site as the Western Hemisphere’s biggest lithium source. The mine’s output will far surpass that of larger peer Albemarle’s (NYSE: ALB) Silver Peak in Nevada, which yields about 5,000 tonnes of lithium carbonate a year.

The project is critical to General Motors, which owns a 38% stake and gained 2.5% in early trading in New York. Lithium Americas said Energy Department funding will cover most of the cost of a processing plant next to the mine.

Thacker Pass in Nevada. (Image: Lithium Americas)

The loan review comes after Greg Beard, senior advisor in the Loan Programs Office, warned that Thacker Pass could struggle to compete with cheaper Chinese lithium, the Washington Free Beacon reported.

Trump officials have also explored taking stakes in MP Materials (NYSE: MP) and Intel as part of efforts to strengthen domestic manufacturing and reduce reliance on foreign supply chains.

Lithium Americas stock was last trading at $6.04, or 97% higher than Tuesday’s close, giving the company a market value of $1.45 billion.