On September 24, according to major media outlets like Reuters and Barron’s, shares of Lithium Americas surged by nearly 90%. This spike followed reports that the Trump administration was considering taking up to a 10% stake in the company. This move is part of a broader effort to restructure a $2.3 billion loan previously approved by the Biden administration for the development of the Thacker Pass lithium mine.
Thacker Pass Project: The Largest Lithium Mine in the U.S.
Located in Humboldt County, Nevada, Thacker Pass is considered the largest known lithium deposit in the world. The project is being developed under a joint venture between Lithium Americas and General Motors (GM), with GM holding a 38% stake. Production from this mine is expected to begin by 2028, with an estimated output of 66,000 tons of lithium carbonate per year, which could meet around 25% of global lithium demand.
🇺🇸 U.S. Government Strategy: Reducing Dependence on China
The potential investment is part of the U.S. government’s strategy to reduce reliance on Chinese lithium supplies. Previously, the government invested $400 million in MP Materials and also considered taking a stake in Intel. Investment in Lithium Americas would strengthen the domestic lithium supply chain.
Challenges in the Lithium Market
Although the investment proposal is promising, the lithium market still faces challenges. Prices have declined, and uncertainties in electric vehicle (EV) demand and policy remain. Nevertheless, the strategic importance of the Thacker Pass project and U.S. government involvement are seen as positive signals for the market.
Impact on Stock Market
Lithium Americas shares saw significant gains in the U.S. stock market. On September 24, the stock increased by 67%, reaching $5.13. Prior to this, on September 23, the shares had already surged by up to 90%.
Conclusion
The U.S. government’s proposed investment in Lithium Americas is a key step toward strengthening the domestic lithium supply chain. Despite market challenges, the Thacker Pass project’s potential and government support provide positive signals for both the company and investors.
