The U.S. Department of Energy will acquire 5% stakes in Lithium Americas Corp (NYSE:LAC) and its Thacker Pass joint venture with General Motors (NYSE:GM), Reuters reported on Tuesday, citing a source familiar with the negotiations.
The move comes as the Trump administration steps up efforts to secure supplies of critical minerals seen as vital to national security, following recent investments in Intel and MP Materials.
Shares of Lithium Americas surged 35% to $7.7 in post-market trading.
The government will obtain the stakes through no-cost warrants as part of renegotiations over a $2.26 billion federal loan for the Nevada mine, which is set to be the largest lithium source in the Western Hemisphere, according to the report.
GM, which invested $625 million last year for a 38% stake, has rights to much of the mine’s lithium output for two decades. Thacker Pass is expected to produce 40,000 metric tons annually, enough to power about 800,000 electric vehicles, the Reuters report added.
Source :
https://www.investing.com/news/stock-market-news/us-govt-to-buy-stakes-in-lithium-americas-thacker-pass-jv-with-gm--reuters-4264890
