Lithium Americas Shares Surge on News of Potential U.S. Government Stake

Daily Car

15/12/2025

U.S.-listed shares of Lithium Americas saw a dramatic rise this week, soaring more than 70% during premarket trading on the back of reports indicating that the Trump administration is considering acquiring an equity stake of up to 10% in the mining company. This move highlights the administration’s ongoing focus on securing domestic resources essential for national security and advanced manufacturing, particularly in the electric vehicle (EV) supply chain.

The discussions, according to sources familiar with the matter, revolve around renegotiating a $2.26 billion government loan related to Lithium Americas’ Thacker Pass lithium mine in Nevada. This mine, developed in partnership with General Motors, has been identified as a strategic project for the U.S. Given that GM already owns a 38% stake in the venture, the automaker’s shares also saw a notable increase, climbing nearly 3% before market open.

Thacker Pass is expected to become the Western Hemisphere’s largest source of lithium upon opening in 2028. Industry analysts note that direct government involvement through equity can be seen as a strong signal of confidence, often hinting at favorable returns on invested capital (ROIC) and long-term support from policymakers. This approach could result in a more stable investment climate for critical mineral projects.

Lithium is a crucial component in EV batteries and electronic devices, making this project key to reducing U.S. reliance on international supply chains, especially from China, which dominates global lithium processing.

The administration’s interest in Lithium Americas follows similar actions in other sectors, including proposed stakes in large chipmaker Intel and mining company MP Materials, all aimed at strengthening domestic manufacturing and securing supply chains.

Lithium Americas restructured its business in late 2022 to better focus on North America, separating its Argentine operations. Despite reporting an increased net loss last quarter, optimism surrounding this government partnership has driven its shares up significantly and positively influenced other lithium miners such as Albemarle and Sigma Lithium, whose shares climbed over 5%.

As the U.S. works to expand its domestic production of critical minerals, the developments around Lithium Americas and Thacker Pass will be closely watched by industry observers and investors alike.

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