Lithium Americas Shares Soar on Trump Administration Stake Talks

Lithium Americas stock soared nearly 95% on Wednesday following reports that the Trump administration may take a stake in the company. The Canadian miner, which leads the development of the massive Thacker Pass lithium project in Nevada, is in discussions with the U.S. Department of Energy and General Motors regarding terms of a $2.3 billion federal loan. The possible equity deal could reshape the future of North American lithium production.

Thacker Pass Loan and Stake Talks Boost Lithium Americas Stock

The surge in Lithium Americas shares follows a Reuters report indicating the U.S. government may seek a 10% equity stake in return for adjusted loan terms. This loan, finalized in 2024, supports the construction of Thacker Pass, the largest known lithium deposit in North America. Phase 1 aims to produce 40,000 tonnes of lithium carbonate annually by 2027—enough for around 800,000 electric vehicles.

Lithium Americas confirmed it is working with the DOE and General Motors, which owns 38% of the project. The funding will support the development of a key lithium processing plant next to the mine site. Thacker Pass is seen as critical to U.S. efforts to reduce reliance on Chinese lithium, especially as demand from the EV sector continues to surge. Meanwhile, General Motors shares gained 2.5% following the news.

Strategic Importance of Thacker Pass to U.S. Supply Chains

The Thacker Pass stake proposal reflects the broader strategy of securing domestic supply chains for critical minerals. Trump officials have also considered equity positions in MP Materials and Intel, part of a national push to strengthen U.S. manufacturing. The Loan Programs Office recently expressed concerns over the project’s ability to compete with low-cost Chinese producers, making government backing even more vital.

If Thacker Pass reaches full output by 2028, it would become the Western Hemisphere’s largest lithium source, surpassing Albemarle’s Silver Peak operation in Nevada. Lithium Americas’ soaring share price has pushed its market cap to $1.45 billion, signaling investor confidence in the project’s viability and strategic value.

SuperMetalPrice Commentary:

The explosive rise in Lithium Americas’ stock underscores the growing strategic urgency around securing domestic lithium supply. Thacker Pass offers the U.S. a chance to reduce dependency on China while backing a vertically integrated EV battery supply chain. Government involvement—especially equity participation—could signal a policy shift toward nationalizing stakes in critical mineral projects. This sets a precedent not only for lithium but also for rare earths, cobalt, and other battery metals.