Lithium Americas (US:LAC) Benzinga·2025-09-23 20:41Core Viewpoint - The Trump administration is negotiating a potential 10% ownership stake in Lithium Americas Corp. as part of restructuring a $2.26 billion federal loan for the Thacker Pass lithium mine, which is expected to be the largest lithium operation in the Western Hemisphere by 2028 [1][3]. Government Involvement - The administration is positioning its stake in Lithium Americas as part of a national security strategy, emphasizing that taxpayers should benefit from the deal [2]. Importance of Thacker Pass - The Thacker Pass mine aims to enhance the domestic lithium supply chain in the U.S., reducing dependence on China, which currently dominates lithium refining and processing. The mine's first phase is projected to produce 40,000 metric tons of lithium carbonate annually, sufficient to power approximately 800,000 electric vehicles [3]. Loan Negotiations - The Department of Energy initially approved the 24-year loan during Biden's administration, but Trump officials are seeking new terms due to concerns over low lithium prices caused by Chinese oversupply. The administration is requesting equity and increased oversight, with Lithium Americas offering warrants equal to 5%-10% of common shares as part of the negotiations [4]. Industry Context - Other companies, including Exxon Mobil, Standard Lithium, and ioneer, are also advancing U.S. projects to counter China's influence in the lithium market. The U.S. government has measures to protect public funds, including the option to take control if the project encounters significant issues. General Motors, which has exclusive rights to purchase output from the mine's first production phase, considers the loan crucial for scaling its electric vehicle battery material supply [5]. LAC Price Action - Lithium Americas shares experienced a significant increase of 74.27%, reaching $5.35 in extended trading [6].