Lithium Americas experienced a significant surge in its stock price, jumping over 70% in premarket trading, following reports that the Trump administration is contemplating acquiring up to a 10% equity stake in the company. This potential investment is linked to ongoing discussions aimed at renegotiating a $2.26 billion U.S. government loan for the company's Thacker Pass lithium project. The project, a joint venture with General Motors, is poised to become the largest lithium source in the Western Hemisphere upon its expected launch in 2028.
Jefferies analysts view the proposed equity stake as indicative of strong anticipated returns. The Trump administration's broader initiative to bolster national security and domestic production also includes exploring investments in companies like Intel and MP Materials. In response to the report, Lithium Americas' shares rose by 67.1% to $5.13, despite a significant increase in net losses reported in Q2. The news also positively impacted the broader lithium sector, with notable gains for companies such as Albemarle, Sigma Lithium, and SQM.
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