Lithium Americas Stock Surged 68% In Wednesday Pre-Market: What's Going On?

Lithium Americas Corp LAC stock surged 67.75% following reports that the Trump administration is looking to acquire a 10% stake in the company.

Trump Seeks Stake In Thacker Pass Lithium As A Security Move

The Trump administration is seeking a direct stake in Lithium Americas, following similar moves with Intel INTC and MP Materials MP, framing the action as a national security strategy. The move is reportedly a part of a move to restructure a $2.26 billion federal loan backing the company’s Thacker Pass lithium mine in Nevada.

The Thacker Pass lithium mine, partly backed by General Motors Company GM, is projected to become the largest lithium operation in the Western Hemisphere once production begins in 2028.

The mine, located near the Oregon border, aims to bolster the U.S.’s domestic lithium supply chain, reducing its dependence on China, which currently dominates refining and processing.

The Trump administration is renegotiating a 24-year lithium loan approved under Biden, citing weak prices from Chinese oversupply, and is seeking equity, increased oversight, and potential concessions from GM.

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US Eyes Lithium Projects As China Ramps Up Production

The move by the Trump administration comes at a time when the global lithium market is experiencing significant shifts. On September 10, lithium miners took a hit after China’s Contemporary Amperex Technology (CATL), the world’s largest battery maker, announced an early restart of its Jianxiawo mine, adding to the market’s supply pressure.

Companies such as Exxon Mobil Corporation XOM, Standard Lithium SLI, and Ioneer INR are also pushing forward U.S. projects aimed at countering China’s influence.

Meanwhile, Lithium Americas has been making significant progress with its Thacker Pass project, with construction underway and mechanical completion targeted for late 2027. The move by the Trump administration to secure a stake in the company reflects the increasing strategic importance of lithium in the global energy transition.

Lithium Americas holds a momentum rating of 64.51%, according to Benzinga’s Proprietary Edge Rankings. It also has a strong price trend over the short, medium and long terms. Check the detailed report here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.