Lithium Americas stock soars 90% on news of potential government stake

Core Insights - Lithium Americas (LAC) stock surged over 90% in premarket trading following reports of the Trump administration's interest in acquiring a stake in the company, which operates the largest lithium mine in the U.S. [1] Company Summary - The Trump administration is reportedly seeking a stake of up to 10% in Lithium Americas as part of renegotiations for a $2.26 billion loan from the Department of Energy for the Thacker Pass lithium mine [2][3] - Lithium Americas has offered no-cost warrants on up to 10% of its common shares to the administration, which is also looking for purchase guarantees from General Motors, a stakeholder in the project [3] - The Thacker Pass project is expected to produce over 40,000 metric tons of lithium carbonate annually, enough to manufacture 800,000 electric vehicles, with production slated to begin in 2028 [4] Industry Summary - Currently, Albemarle's Silver Peak project is the only operating lithium mine in the U.S., producing less than 5,000 metric tons per year, highlighting the significant potential of the Thacker Pass project [5] - The U.S. has a minimal share of lithium refining, processing less than 3% of the world's lithium, while China refines over 65%, indicating a critical need for domestic supply chain development [6] - The administration's interest in Lithium Americas aligns with broader efforts to strengthen domestic production capabilities in key industries, including mining and semiconductor manufacturing [6]