Lithium Americas Stock Soars 100% as Trump Administration Considers Equity Stake

 Lithium Americas saw its stock price more than double on Wednesday, jumping over 100%, following news that the Trump administration is considering taking an equity stake in the Vancouver-based mining company. The move comes as the company negotiates a $2.2 billion loan from the U.S. Department of Energy (DOE) for its Thacker Pass lithium mine in Nevada.

The White House’s proposed equity stake is part of the ongoing loan discussions, with the company needing to renegotiate terms due to missed loan conditions. According to a Trump administration official, the equity stake would serve as a “cash buffer” to reduce taxpayer risk, especially since the loan repayment schedule will be pushed out to later years. Reuters was the first to report the potential equity stake.

Shares of Lithium Americas hit a high of $6.23 on Wednesday, up from $3.07 the previous day. The surge has increased the company's market capitalization to around $1.5 billion. The proposal marks the first time the U.S. government has sought an equity stake in a Canadian company as part of its strategy to secure critical minerals for U.S. interests.

Lithium Americas, which is listed on both the Toronto Stock Exchange and the NYSE, operates the Thacker Pass project in a joint venture with General Motors (GM). GM holds a 38% stake in the project, while Lithium Americas retains 62%. The mine, expected to be one of North America's largest lithium sources, is slated to begin operations in late 2027. Lithium is a crucial material for electric vehicle (EV) batteries, and the project’s importance has grown as the U.S. looks to secure its supply chain for the EV industry.

As part of the renegotiation process, the company has been in talks with both the Department of Energy and GM. However, the final deal has not been reached yet, and Canadian regulatory approval may also be required due to Lithium Americas' incorporation in Canada.

The potential U.S. equity stake in Lithium Americas follows the Department of Defense’s 15% investment in MP Materials, a rare earth miner, earlier this year. Since the deal, MP Materials’ stock has more than doubled, signaling the administration’s increasing involvement in securing access to vital minerals. The equity stake proposal in Lithium Americas is viewed as a strategic move to protect the U.S. supply chain from international competition, particularly state-sponsored competition from China.

While the deal is still in the works, the Trump administration’s support for the Thacker Pass project signals positive momentum. The ongoing discussions with the DOE and GM are seen as a key step in advancing the mine and bolstering U.S. lithium production in the coming years.