Lithium Americas could be the Trump administration's next investment, after chips and rare earths

By James Rogers

Lithium Americas' stock doubled in very active trading, after a report that the White House is seeking an equity stake

The Trump administration has previously taken stakes in Intel and MP Materials.

Lithium Americas Corp.'s stock was skyrocketing Wednesday, following a report that the Trump administration now wants an equity stake in the lithium producer, as new terms of a pre-existing government loan agreement are being negotiated.

Government ownership of part of the company (LAC) (CA:LAC) would mark the White House's latest move into industries it deems vital to the U.S. economy, as evidenced by recent stakes taken by the Trump administration in semiconductor giant Intel Corp. (INTC) and rare-earths producer MP Materials Corp. (MP).

On key difference between the companies is that, while the Thacker Pass lithium-mining project Lithium Americas is developing is in the U.S. - in northern Nevada - the company is headquartered outside of the U.S., in Vancouver, Canada.

Lithium Americas' stock soared 96% toward a 17-month high in afternoon trading. That put it on track for its biggest one-day gain since the stock started trading in its current form in October 2023. Trading volume at last check was 233.2 million shares, enough to make it the most actively traded stock on the New York Stock Exchange.

The rally was also helping shares of others in the lithium business, as the Global X Lithium & Battery Tech ETF LIT rallied 4% and as Albermarle Corp. shares (ALB) surged 2.5%.

Reuters reported late Tuesday that the administration was seeking an equity stake of up to 10% in Lithium Americas as it renegotiates the terms of a $2.26 billion loan from the U.S. Department of Energy for the company's Thacker Pass lithium project, a joint venture with General Motors Co (GM). The loan had closed in October 2024, during the Biden administration.

In a statement released early Wednesday, Lithium Americas said that the company is in discussions with the Energy Department and GM regarding the first draw on the government loan. The discussions include potential amendments to the loan, "including corresponding consideration," the company said.

The White House did not return MarketWatch requests for comments.

Lithium is deemed vital because it is a key component in rechargeable batteries that power electric and hybrid vehicles, as well as a myriad of consumer electronics and household products.

Lithium Americas describes the Thacker Pass as the world's largest known measured lithium resource and reserve. Construction of the mine began in 2023, and "mechanical completion" is expected in 2027, Lithium Americas told MarketWatch. The company said that it is on schedule to be in production in late 2027, and in 2028 will scale up to full production of 40,000 metric tons per year of battery-quality lithium carbonate.

As of June 30, there were 300 manual craft workers at the site, a number that is expected to increase to approximately 1,000 workers by the end of 2025, according to Lithium Americas.

-James Rogers

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09-24-25 1250ET