Lithium Americas (LAC) Stock: Jumps 30% as US Government Takes 5% Stakes in Company

TLDR

Table of Contents

The Department of Energy took a 5% stake in Lithium Americas and a separate 5% stake in the Thacker Pass joint venture with General Motors
Lithium Americas finalized the first $435 million draw from a $2.26 billion government loan for the Nevada mining project
LAC stock jumped 30% in premarket trading following the announcement on Wednesday
The deal includes over $100 million in new equity and follows similar government investments in Intel and MP Materials
GM owns 38% of Thacker Pass and has rights to buy lithium from the first phase and a portion of the second phase for 20 years

Lithium Americas stock shot up 30% in premarket trading Wednesday after the company announced a new deal with the federal government. The Department of Energy is now taking a 5% ownership stake in the Vancouver-based company.

The DOE also secured a separate 5% stake in the Thacker Pass joint venture between Lithium Americas and General Motors. This marks a shift in how the government is handling loans to strategic industries.

The company confirmed it finalized an agreement to draw the first $435 million from a previously announced $2.26 billion loan. The funds will go toward developing the Thacker Pass site in Nevada.

The U.S. government will take a stake in Lithium Americas $LAC to support its Thacker Pass lithium project in Nevada, Energy Secretary Chris Wright said on Bloomberg TV. Lithium Americas is also in talks with GM and DOE on a $2.3B federal loan. pic.twitter.com/5KSnCptwz3
— Wall St Engine (@wallstengine) September 30, 2025

This isn’t the first time the Trump administration has taken equity positions in private companies. Recent investments include stakes in chipmaker Intel and rare earth processor MP Materials. The government appears interested in owning pieces of companies it views as critical to national security.

Last week Reuters reported that administration officials were renegotiating the loan terms with Lithium Americas. The talks centered around converting part of the debt into an equity stake.

Changes to the Original Deal

The revised agreement includes more than $100 million in new equity. Energy Department officials said the changes were designed to protect taxpayers.

The government initially wanted General Motors to guarantee it would buy lithium from Thacker Pass regardless of market conditions. GM pushed back on that request. The automaker invested $625 million in the mine last year for a 38% stake.

Under the current arrangement, GM has the right to purchase all lithium from the first phase of production. It can also buy a portion from the second phase for 20 years.

General Motors will now permit the project to enter additional offtake agreements with third parties. These deals will cover volumes that GM doesn’t purchase.

Lithium Americas CEO Jonathan Evans praised the support from the administration and GM. He said the partnership is “onshoring large-scale U.S. lithium production” and strengthening America’s supply chain.

The company currently generates no sales revenue. Thacker Pass isn’t operational yet.

Why Thacker Pass Matters

Both Republican and Democratic lawmakers have supported Thacker Pass as crucial for domestic critical minerals production. The project aims to reduce U.S. dependence on China for lithium processing.

China dominates the global lithium supply chain. The country produces over 40,000 metric tons annually, making it the third-largest producer behind Australia and Chile.

China’s real power lies in refining. It processes more than 75% of the world’s lithium into battery-grade material suitable for electric vehicle batteries.

The United States produces less than 5,000 metric tons of lithium per year. The only active facility is a Nevada operation owned by Albemarle.

Thacker Pass is expected to produce 40,000 metric tons of battery-quality lithium carbonate annually in its first phase. That’s enough material for up to 800,000 electric vehicles.

The project is slated to become the largest source of lithium in the Western Hemisphere once operational. Development continues with the newly secured federal funding.

Shares were trading at $7.53 in premarket activity. The stock was already up 91% over the past month as news of potential government involvement leaked out.

The deal represents a new approach where the government seeks equity returns rather than just loan interest payments. Department of Energy officials view the arrangement as beneficial for taxpayers while supporting domestic mineral production.

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