Lithium Americas shares soar 85% on Trump stake report

Shares in Lithium Americas (TSX, NYSE: LAC) jumped more than 85% on Wednesday in New York on reports that the US government may seek a stake in the Canadian miner as part of a $2.3 billion loan renegotiation tied to its Nevada lithium project.The company confirmed it is in discussions with the US Department of Energy and its partner in the Thacker Pass project, General Motors (NYSE: GM), about conditions for the first draw of the 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 mineThacker 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) in Nevada, which yields about 5,000 tonnes of 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, according to 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 $5.78, giving the company a market value of $1.24 billion.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com