Key Stats for Lithium Americas Stock
- 1-Year Price Change for $LAC stock: 95%
- Current Share Price: $6
- 52-Week High: $6.30
- $LAC Stock Price Target: $4.58
What Happened?
Lithium Americas (LAC) stock nearly doubled on Wednesday after reports that the Trump administration is seeking an equity stake of up to 10% in the Canadian mining company as part of renegotiating terms for a $2.26 billion Department of Energy loan.
The White House proposed the equity stake as Lithium Americas renegotiates its loan agreement for the Thacker Pass lithium mine in Nevada, which is expected to become the largest lithium source in the Western Hemisphere upon its 2028 opening.
The project is a joint venture with General Motors, which holds a 38% stake and has agreed to purchase the mine’s lithium output.
According to a Trump administration official, the renegotiation became necessary because Lithium Americas and GM failed to meet conditions for the first loan disbursement.
The company requested to push out part of the loan repayment to later years due to depressed lithium prices caused by Chinese overproduction.
If we’re going to push out part of the repayment into later years, then the administration would like a very small stake of equity to create essentially a cash buffer and eliminate some risk on behalf of taxpayers,” the official explained.
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What the Market Is Telling Us About LAC Stock
The explosive rally in LAC stock reflects investor enthusiasm for the Trump administration’s strategic approach to securing critical mineral supply chains.
This marks the latest example of direct government investment in companies deemed essential to national security, following similar stakes in Intel and MP Materials.
The market is signaling strong confidence in Thacker Pass’s strategic importance. The mine’s first phase is expected to produce 40,000 metric tons of battery-grade lithium carbonate annually, sufficient for approximately 800,000 electric vehicles.
By comparison, the only operating U.S. lithium mine (Albemarle’s Silver Peak in Nevada) produces less than 5,000 metric tons yearly.
China’s dominance in lithium processing (over 75% of global refining capacity) versus America’s less than 3% share underscores why investors view government backing as crucial for domestic lithium production.
The administration’s willingness to take equity stakes rather than just provide loans suggests a more hands-on approach to building strategic supply chains.
GM stock also gained over 2% on the news, indicating broader market optimism about securing domestic EV battery supply chains and reducing dependence on Chinese lithium processing.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
