Lithium Americas Corp (TSX:LAC, NYSE:LAC) shares powered 97% higher to C$8.26 in late afternoon trading on Wednesday after the Trump administration is seeking an ownership interest in the mining company, which is based in Canada, Bloomberg reported.
Lithium Americas is in negotiations with the US Energy Department and General Motors (GM) over the terms of its US$2.26 billion government loan for a lithium mining project in Nevada.
The project, called Thacker Pass, is expected to become one of the largest sources of lithium in North America, with the first phase of production scheduled to begin in late 2027.
Earlier this month, a US Energy Department official questioned the viability of Thacker Pass, and administration officials have raised concerns about the company’s ability to repay the loan given low lithium prices, according to the Wall Street Journal.
In October 2024, GM announced it would invest $625 million into a joint venture with Lithium Americas, giving the automaker a 38% equity interest in the project.
The Trump administration’s potential ownership moves comes just two months after the US Department of Defense acquired 15% of rare earth miner MP Materials.
Shares MP Materials have more than doubled since the deal was announced.