Many lithium related stocks received a boost Wednesday after the US government agreed to acquire a 5% ownership interest in Canada-based Lithium Americas Corp (TSX:LAC, NYSE:LAC).
Shares of Lithium Americas climbed 18% to C$9.37 following the announcement.
Lithium Americas is developing the Thacker Pass mining project in Nevada, the largest lithium deposit in the US.
Thacker Pass is expected to produce about 40,000 metric tons per year of battery-grade lithium carbonate for use in lithium-ion batteries, the US Energy Department said in a statement.
The investment is part of the Trump administration’s plans to accelerate development of a domestic supply chain to counter China’s dominance over critical metals.
In July, the US Department of Defense acquired 15% of rare earth miner MP Materials.
Other lithium stocks that opened higher on Wednesday included Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF), up as much as 4%. The company is developing its wholly owned Angel Island project in Nevada, which hosts one of the largest sedimentary lithium deposits in the US.
Century Lithium announced on Wednesday it has cleared key regulatory hurdles for its Angel Island lithium project in Nevada, a step the company says should smooth the path to production.
Angel Island is currently in the permitting stage for a three-phase feasibility-level production plan, expected to yield an estimated life-of-mine average of 34,000 tonnes per year of lithium carbonate over a 40-year mine life.
Shares of lithium producer Albemarle Corporation (NYSE:ALB, ETR:AMC) also received a lift Wednesday, up nearly 5% higher.