TLDR
- LAC stock hit 52-week high of $7.59 after jumping 23% on government investment news
- Department of Energy took 5% stakes in Lithium Americas and Thacker Pass joint venture with GM
- Company secured first $435 million draw from $2.26 billion federal loan
- Government acquiring stakes through warrants priced at one penny each
- Stock has climbed 154% over the past year
The Department of Energy became a shareholder in Lithium Americas this week. The federal government took a 5% position in the company and another 5% in its Thacker Pass venture with General Motors.
LAC stock surged 23% to $7.03 on Wednesday. Shares later touched $7.59, marking a new 52-week high for the mining company.
The move represents another equity investment by the Trump administration. Washington previously acquired stakes in Intel and MP Materials as part of efforts to secure domestic supply chains.
Lithium Americas closed an agreement with the Energy Department to access $435 million. This represents the initial draw from a $2.26 billion loan package for the Nevada mining project.
The federal government is obtaining these ownership stakes through warrants. Each warrant has an exercise price of just one penny.
CEO Jonathan Evans welcomed the government backing. The stock has delivered strong returns for investors, rising 154% over the past 12 months.
Deal Terms and GM Partnership
The equity arrangement came after negotiations over loan terms. Administration officials initially wanted guarantees that GM would purchase lithium regardless of price conditions.
GM declined that request. The automaker invested $625 million last year for a 38% stake in Thacker Pass.
GM holds rights to all first-phase production. The company can also buy a portion of second-phase output for two decades.
Shilpan Amin, GM’s supply chain procurement chief, expressed confidence in the project. He noted it will reduce American dependence on imported lithium.
Under the revised agreement, GM will permit Lithium Americas to sell unallocated future production to other buyers. The mining company must also establish a $120 million loan reserve account within one year of the initial draw.
Production Plans and Market Position
Canada’s government will review the transaction under standard investment rules. Lithium Americas maintains its headquarters in Vancouver.
A government spokesperson confirmed the review process. Officials evaluate foreign investments in critical minerals based on Canadian interests.
Thacker Pass is under construction in Nevada. The facility is scheduled to begin operations in 2028.
First-phase production targets 40,000 metric tons of battery-grade lithium carbonate annually. That volume can supply roughly 800,000 electric vehicles.
The US currently produces less than 5,000 metric tons at Albemarle’s Nevada operation. China processes over 75% of global lithium into battery-grade material.
China produces more than 40,000 metric tons yearly. Only Australia and Chile produce more raw lithium than China.
Both political parties have supported the Thacker Pass development. Lawmakers view the project as critical for reducing Chinese supply chain dependence.
The company maintains a current ratio of 9.88. Lithium Americas holds more cash than debt on its balance sheet.
Stock performance has been strong recently, with gains of 8.37% in the past week alone. The DOE loan draw of $435 million will fund continued construction at the Thacker Pass site.
