New York: U.S.-listed shares of Lithium Americas experienced a dramatic surge of over 70% in premarket trading on Wednesday after reports emerged that the Trump administration is exploring an equity stake of up to 10% in the lithium mining company. The move signals the administration’s continued focus on industries deemed critical to national security, with lithium a key component for electric vehicles and renewable energy technologies taking center stage.
According to sources familiar with the discussions, the proposed stake is part of ongoing negotiations to restructure a $2.26 billion loan extended by the U.S. Department of Energy for the Thacker Pass lithium mine. This project, a joint venture with General Motors, is projected to become the Western Hemisphere’s largest lithium source upon its expected commencement in 2028, producing 40,000 metric tons annually. Analysts note that an equity stake could enhance the government’s return on investment while ensuring greater oversight of a strategic resource.
The Thacker Pass initiative has long been promoted as a means to boost domestic lithium production and reduce U.S. reliance on Chinese supply chains. The Trump administration’s potential involvement mirrors its broader strategy of taking active stakes in companies critical to national security and supply chain resilience, following similar moves in semiconductor and rare earth sectors.
Lithium Americas has restructured its operations to prioritize the Thacker Pass project, spinning off its Argentine businesses in 2022. Despite reporting a near doubling of net losses in its latest quarterly earnings, investor sentiment turned sharply positive in light of the government’s reported plans. Shares of other lithium producers, including Albemarle, Sigma Lithium, and SQM, also registered notable gains. General Motors, which holds a 38% interest in the Thacker Pass mine, saw its stock rise 2.9% before trading officially opened.
As discussions advance, industry observers are closely monitoring how the administration’s proposed equity acquisition will shape domestic lithium production, strategic resource management, and broader efforts to re-shore critical supply chains. The Thacker Pass project now sits at the intersection of private enterprise, national security, and the global race for clean energy resources.