Shares of Lithium Americas closed at $8.32 after jumping nearly 90% on Wednesday after Reuters reported that the Trump administration is seeking up to a 10% stake in the miner, in the latest sign of Washington’s intervention into industries it considers critical to national security.
Late Tuesday, Reuters cited two people familiar with the talks who said the administration is considering the stake as part of negotiations over a $2.26 billion Department of Energy loan for the company’s Thacker Pass lithium project in Nevada, the largest planned lithium mine in the Western Hemisphere.
Canada-based Lithium Americas said on Wednesday it was in discussions with the U.S. energy department and General Motors over the Thacker Pass loan.
The move underscores President Donald Trump’s increasing use of direct government ownership to steer strategic sectors and curb reliance on China, which dominates refining of many critical minerals.
China produces over 40,000 metric tons of lithium annually, ranking third after Australia and Chile, but dominates refining, processing more than 75% of the world’s lithium into battery-grade material.
TD Cowen analysts said a government stake would lend credence to the Thacker Pass project completion and expansion to multiple phases with perhaps enhanced economics.
The project is seen as a linchpin in building a domestic supply chain part of Washington’s long-standing drive to boost U.S. production of lithium, a metal used to make batteries for electric vehicles and other electronics.
The Trump administration recently moved to take a stake in chipmaker Intel following a deal that would make the Department of Defense the largest shareholder in rare earths MP Materials.
Jefferies said the administration’s preference for equity stakes, viewed as lower political cost than tax increases, can support financing, corporate profits, and favorable returns on invested capital.
Lithium Americas’ Canadian and U.S.-listed shares were both up about 97% at C$8.37 and $6.03, respectively. The company had a market value of roughly $1.46 billion as of last close on the New York Stock Exchange.
OFFTAKE AGREEMENTS KEY
NBCFM Research analyst Mohamed Sidibe said the MP Materials-DoD model shows how government equity, long-term offtake, and price support can derisk strategic projects.
The Thacker Pass project is expected to begin production in 2028.
