Lithium Americas Shares Surge 95% Amid US Government Equity Stake Proposal

US Government Proposes Equity Stake in Lithium Americas Amid Loan Talks

Shares of Lithium Americas, a Vancouver-based lithium mining company, nearly doubled on Wednesday after reports emerged that the Trump administration is seeking an equity stake in the firm. This move is part of ongoing negotiations to restructure a $2.2 billion loan from the Department of Energy (DOE) intended to finance the company’s Thacker Pass lithium project in Nevada. The proposal, first reported by Reuters and confirmed by a Trump administration official to CNBC, reflects a broader US government strategy to gain direct ownership in critical mineral supply chains vital to national interests. While the Department of Defense previously acquired a 15% stake in rare earths miner MP Materials, this is the first such equity interest proposed in a Canadian mining entity.

Lithium Americas Stock Soars on Equity Stake News

Following the announcement, Lithium Americas’ shares surged 95%, closing at $6.01 on the New York Stock Exchange. During the session, the stock reached a high of $6.23, more than doubling Tuesday’s closing price of $3.07. The company’s market capitalization now stands at approximately $1.5 billion. Lithium Americas is publicly traded on both the Toronto Stock Exchange and NYSE but is incorporated and domiciled in Canada, making this government interest a notable development in cross-border resource investments.

Thacker Pass: A Strategic Lithium Asset for US EV Supply Chain

The Thacker Pass project in northern Nevada is poised to become one of North America’s largest lithium producers. Scheduled to commence operations in late 2027, the mine is a joint venture between Lithium Americas, which holds a 62% stake and operates the site, and General Motors, which owns 38% and has committed to purchasing lithium output upon production. Lithium is a critical component for electric vehicle batteries, and securing domestic supply is a key priority for the US government amid global competition, particularly from China.

Loan Terms Renegotiated Amid Delayed Disbursement

The equity stake proposal arises as Lithium Americas and General Motors have failed to meet initial conditions for the first disbursement of the DOE loan. They have requested to defer portions of loan repayments to later years, prompting the administration to seek a small equity position to serve as a financial buffer and reduce risk for taxpayers. “If we’re going to push out part of the repayment into later years, then the administration would like a very small stake of equity to create essentially a cash buffer and eliminate some risk on behalf of taxpayers,” said a Trump administration official. Discussions remain ongoing, with no finalized agreement yet. The administration maintains support for the Thacker Pass project, emphasizing the positive nature of the negotiations. Given Lithium Americas’ Canadian incorporation, any equity investment by the US government may require approval from Canadian regulatory authorities.

Strategic Context and Government Involvement in Mining

This initiative aligns with the Trump administration’s broader strategy to strengthen US control over critical mineral supply chains. Earlier in 2025, Interior Secretary Doug Burgum disclosed plans to take equity stakes in mining companies to counteract competition from state-backed Chinese enterprises. The Department of Defense’s acquisition of a 15% stake in MP Materials, a US rare earths miner, in July 2025, exemplifies this approach. MP Materials’ shares have more than doubled following the investment, signaling market approval of government involvement.

FinOracleAI — Market View

The proposed equity stake by the Trump administration in Lithium Americas signals a significant shift in US policy towards direct investment in critical mineral producers, especially those outside the US jurisdiction but integral to domestic supply chains.

• Opportunities: Enhanced government support may accelerate project financing and development timelines for Thacker Pass, bolstering US lithium supply security.
• Risks: Cross-border regulatory hurdles and shareholder dilution concerns could complicate deal closure and market perception.
• Strategic Impact: This move may encourage other governments to pursue equity stakes in strategic mining assets, intensifying competition in the sector.
• Market Reaction: Positive investor response demonstrates confidence in government backing and the growing importance of lithium in the EV market.

Impact: The equity stake proposal is a positive development for Lithium Americas, providing financial risk mitigation and signaling strong government support for domestic critical mineral production.