Trump Eyes 10% Stake in Lithium Americas, Stock Soars over 90%
Trump’s lithium gamble ignites Wall Street frenzy as U.S. doubles down on Thacker Pass.
In a blockbuster move that sent shockwaves through the market, Lithium Americas Corp. (TSX: LAC, NYSE: LAC) saw its stock price skyrocket on September 24, 2025, following reports that the Trump administration is eyeing a juicy 10% equity stake in the company. The catalyst? A renegotiation of a hefty $2.26 billion loan from the U.S. Department of Energy (DOE) tied to the company’s Thacker Pass lithium project in Nevada. Investors, smelling opportunity, piled in, driving U.S.-listed shares up as much as 91% in premarket trading before settling into a still-impressive 70% surge. But what’s behind this electrifying rally, and why is Wall Street buzzing?
The Thacker Pass project, nestled in Humboldt County, Nevada, isn’t just another mining venture, it’s poised to become the Western Hemisphere’s largest lithium source when it fires up in 2028. With North America’s biggest known lithium deposit, this project is a linchpin in the U.S. quest to secure a domestic supply chain for battery-grade lithium carbonate, a critical ingredient for electric vehicle (EV) batteries and energy storage systems. The first phase alone is expected to churn out 40,000 metric tons of lithium carbonate annually, enough to power up to 800,000 EVs. In a world racing toward electrification, that’s not just a big deal, it’s a national security priority.
The Trump administration’s interest in Lithium Americas follows a pattern of strategic investments in industries deemed vital to U.S. interests. Just weeks ago, the government snapped up a 10% stake in chip giant Intel and a 15% slice of rare earth miner MP Materials. Now, with Thacker Pass in its sights, the White House is doubling down on securing critical minerals to counter China’s dominance in lithium refining. The proposed equity stake, tied to renegotiating the DOE loan’s terms, signals robust government support, which analysts at TD Cowen suggest could bolster the project’s completion and even pave the way for future expansions with enhanced economics. Morningstar’s Seth Goldstein also chimed in, noting that an equity deal might come with offtake price guarantees, potentially shielding Thacker Pass from volatile lithium prices driven by Chinese oversupply.
General Motors (GM), holding a 38% stake in Thacker Pass after a $625 million investment, is another key player in this saga. The automaker, which has secured rights to the mine’s phase-one lithium output, called the DOE loan a “necessary part” of commercializing this critical resource. However, Trump officials are reportedly pushing for guarantees that GM will indeed purchase the lithium, adding a layer of complexity to the talks. With construction already underway, over 600 contractors are buzzing at the site, the project’s $2.93 billion price tag underscores its scale and ambition.
The market’s reaction was nothing short of explosive. Lithium Americas shares, which had been treading water at around $3, shot up to $5.54 in after-hours trading on September 23, 2025, before stabilizing at a still-lofty $5.22 in premarket trading the next day. The rally wasn’t limited to Lithium Americas, peers like Albemarle, Sigma Lithium, and SQM also saw gains of 2.7% to 5.3%, riding the wave of renewed investor enthusiasm for domestic lithium production. Jefferies analysts pointed out that the administration’s preference for equity stakes over tax hikes could juice corporate profits and deliver favorable returns, further fueling the sector’s appeal.
But not everyone’s popping champagne. JPMorgan threw a bit of cold water on the party, calling the rally “overblown” given uncertainties around the deal’s final terms. The stock’s volatility, nearly flat for 2025 before this surge, also hints at risks, especially with 15% of shares shorted, likely sparking a frenzy of short covering. Low lithium prices, driven by Chinese overproduction, have raised concerns about repayment risks for the 24-year DOE loan, prompting the administration to seek more oversight and guarantees.
For now, Lithium Americas is basking in the spotlight. The Thacker Pass project, greenlit by Trump in his first term and advanced under Biden, enjoys bipartisan support as a cornerstone of U.S. efforts to reduce reliance on foreign minerals. A White House official summed it up succinctly: “President Trump supports this project. He wants it to succeed and also be fair to taxpayers.” With the government potentially joining the shareholder roster, Lithium Americas is no longer just a mining company, it’s a geopolitical chess piece in the global energy transition.
As the dust settles, investors are left pondering: Is this the start of a lithium-fueled moonshot, or a volatile spike destined for a reality check? One thing’s certain, Thacker Pass is charging up the market, and Lithium Americas is riding the lightning.