Lithium Americas Corp. (LAC) stock surged 22.53% in Friday's pre-market trading session following news of a significant investment from the U.S. Department of Energy (DOE). The company's shares rallied amid a broader uptick in solid-state battery stocks, with LAC emerging as one of the top performers in the sector.
The Vancouver-based lithium producer announced that the DOE has acquired a 5% stake in the company, along with a separate 5% stake in its Thacker Pass lithium project joint venture with General Motors. This strategic move is part of the U.S. government's efforts to bolster domestic production of critical minerals and reduce reliance on foreign suppliers, particularly China. Additionally, Lithium Americas confirmed the finalization of an agreement with the DOE to initiate the first $435 million draw from a previously announced $2.26 billion loan to support the development of the Thacker Pass site.
The Thacker Pass project, located in Nevada, is poised to become the largest source of lithium in the Western Hemisphere. With its first phase expected to produce 40,000 metric tons of battery-quality lithium carbonate annually, the project could potentially supply enough material for up to 800,000 electric vehicles. This development is crucial for the United States, which currently produces less than 5,000 metric tons of lithium annually, compared to China's dominant position in global lithium processing. The substantial government backing and the project's strategic importance appear to have fueled investor enthusiasm, driving the significant uptick in Lithium Americas' stock price.
