Key Numbers:
- Market cap now sits at approximately $2 billion CAD.
- Lithium Americas holds a 62% stake in Thacker Pass; GM owns 38%.
- Thacker Pass is expected to be a key source of lithium in North America in the near future.
Lithium Americas (TSX:LAC)(NYSE:LAC) nearly doubled in value on Wednesday, surging 95% after news broke that the Trump administration is pursuing an equity stake in the company as part of ongoing negotiations over a $2.2 billion Department of Energy loan for its Thacker Pass lithium project in Nevada.
The proposed stake marks a strategic shift in U.S. industrial policy, with the White House looking to gain direct ownership in critical mineral supply chains. While the Department of Defense previously took a 15% equity position in MP Materials, this would be the first such deal involving a Canadian-based company. Lithium Americas, headquartered in Vancouver, trades on both the TSX and NYSE.
Thacker Pass, a joint venture between Lithium Americas (62%) and General Motors (38%), is expected to become one of North America’s largest lithium sources, with Phase 1 operations set to begin in late 2027. GM has committed to purchasing future offtake, making the project central to U.S. efforts to build a domestic EV battery supply chain.
While no deal has been finalized, both sides have described the talks as constructive. The proposed investment may also require Canadian regulatory approval, due to Lithium Americas’ corporate domicile. This initiative aligns with recent comments from Interior Secretary Doug Burgum, who revealed plans to support domestic miners against Chinese state-backed competitors by taking minority stakes.