Shares of Lithium Americas (LAC) rocketed in premarket trading Wednesday, climbing more than 90% following news that the Trump administration is exploring taking a stake in the company, which operates what is set to become the largest lithium mine in the United States. The report, first published by Reuters on Tuesday evening, sent shockwaves through the market, also giving a modest boost to General Motors (GM), which owns a 38% stake in the Thacker Pass project, with its shares rising slightly over 2% in morning trading.
The administration is reportedly seeking up to a 10% stake in Vancouver-based Lithium Americas as part of renegotiations for a $2.26 billion Department of Energy loan that the company received to fund the Thacker Pass lithium mine in Nevada. As part of the prospective deal, Lithium Americas has offered no-cost warrants covering up to 10% of the company’s common shares, while the federal government is also seeking purchase guarantees from GM, which has committed $625 million to the project. Reuters reports that the original loan agreement includes clauses allowing the government to seize control of the mine in the event of significant delays or cost overruns.
The Thacker Pass mine is slated to be the largest lithium mining operation in the Western Hemisphere. Its first phase, set to begin production in 2028, is expected to yield more than 40,000 metric tons of lithium carbonate annually — enough to supply materials for approximately 800,000 electric vehicles. By comparison, Albemarle’s Silver Peak project in Nevada, currently the only operating lithium mine in the U.S., produces less than 5,000 metric tons each year.
The Trump administration has consistently emphasized lithium production as a strategic priority in securing domestic supply chains for critical metals, alongside other key resources such as copper and uranium. China currently produces more than 40,000 metric tons of lithium annually, making it the world’s third-largest producer after Australia and Chile, and refines over 65% of the global supply — compared to less than 3% refined domestically in the U.S. Lithium must be refined before it can be used in products such as electric vehicle batteries, underscoring the strategic importance of expanding domestic capacity.
The administration’s interest in Lithium Americas parallels recent moves to acquire stakes in other key industrial players, including rare-earth miner MP Materials (MP) and semiconductor giant Intel (INTC). Shares in MP Materials have surged over 50% since the Department of Defense deal in July made the government the largest shareholder, while Intel shares have climbed more than 25% amid reports of federal talks aimed at strengthening domestic chip production.
Lithium Americas’ DOE loan was originally approved under the first Trump administration, and the company is scheduled to make its first draw on the funds this month. Renegotiations reportedly stem from concerns that depressed lithium prices, driven by Chinese overproduction, could hinder the company’s ability to repay the loan. Lithium hydroxide and lithium carbonate futures have dropped more than 4.5% and 12%, respectively, over the past year, according to FastMarkets data.
Construction at the Thacker Pass project has been ongoing for nearly a year, positioning the mine as a cornerstone of U.S. efforts to increase domestic lithium production and reduce reliance on foreign supply. Investors responded immediately to the news, sending shares soaring in premarket trading, reflecting both excitement over the potential federal stake and optimism about the mine’s long-term prospects in a market increasingly focused on electrification and battery materials.
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