Shares of Lithium Americas Corp. zoomed nearly 90% on Wednesday after a report said US President Donald Trump’s administration is reportedly seeking to acquire an equity stake of up to 10% in the miner.
The move, which follows similar actions with companies such as Intel and MP Materials, aims to reduce US reliance on China for critical minerals.
China produces over 40,000 metric tons of lithium annually, ranking third after Australia and Chile, but dominates refining, processing more than 75% of the world’s lithium into battery-grade material.
Thacker Pass lithium project
The Trump administration is considering the stake as part of negotiations over a $2.26 billion Department of Energy loan for the company’s Thacker Pass lithium project in Nevada, the largest planned lithium mine in the Western Hemisphere, reported Reuters on Tuesday.
The discussions are centered on the DOE loan for Lithium Americas’ Thacker Pass project in Nevada, which is poised to become the largest planned lithium mine in the Western Hemisphere. The Trump administration is reportedly seeking the equity stake as it renegotiates the loan terms, raising concerns over the company’s ability to repay the loan due to low lithium prices caused by Chinese overproduction.
Canada-based Lithium Americas said on Wednesday it is in active discussions with the DOE and its joint venture partner, General Motors, regarding the loan and potential amendments.
The company stated it is working toward a “mutually agreeable resolution.”
A White House official noted that while the president supports the project, there is “no such thing as free money.”
Lithium Americas’ Canadian and US-listed shares were both up about 90% at C$8.04 and $5.80, respectively.
The company had a market value of $744.5 million as of last close on the New York Stock Exchange.
General Motors, which invested $625 million in the mine last year for a 38% stake, has the right to buy all of the project’s lithium from its first phase and a portion from the second phase for 20 years, although Trump officials are now seeking a guarantee that GM will buy the metal, reported Reuters citing sources.
The Thacker Pass project is expected to begin production in 2028.