Shares of Lithium Americas surged over 80% in after-hours trading Tuesday, climbing above $5.6 to levels not seen since March of 2024, following reports that the Trump administration is seeking to acquire up to a 10% stake in the company.
The administration is said to be renegotiating terms of Lithium Americas’ $2.26 billion Energy Department loan for its Thacker Pass lithium project. The $2.93 billion project was initially approved during Trump’s first term, with the loan finalized last year under the Biden administration.
Thacker Pass has been promoted by both political parties as crucial for boosting U.S. critical minerals production and reducing dependence on China. Once operational, Thacker Pass’s first phase is expected to yield 40,000 metric tons of battery-quality lithium carbonate annually, enough to supply up to 800,000 electric vehicles.
Lithium Americas was scheduled to make its first loan draw earlier this month, but Trump officials sought new terms amid concerns about repayment capability due to low lithium prices caused by Chinese overproduction.
During recent discussions about the loan’s amortization schedule, Lithium Americas offered the government no-cost warrants equivalent to 5-10% of its common shares. The administration is also reportedly pushing for GM, which invested $625 million in the project, to transfer some of its control to Washington.
The 24-year loan features interest rates based on U.S. Treasury rates as each tranche is drawn.
Source :
https://www.investing.com/news/stock-market-news/lithium-americas-soars-on-report-that-trump-admin-mulls-taking-stake-4252090
