Why Did Lithium Americas Stock Jump After-Hours Today?

Lithium Americas’ U.S. shares (LAC) jumped nearly 80% in extended trading on Tuesday after a report stated that the Trump administration wants to buy a stake in the company amid its efforts to renegotiate the terms of a $2.26 billion loan for the Thacker Pass project.

According to a Reuters News report, citing sources familiar with the matter, Lithium Americas was expected to draw the first tranche of the loan earlier this month. However, U.S. officials chose to renegotiate the terms of the loan as the government remains concerned about the miner’s ability to repay the loan due to low lithium prices.

The Thacker Pass project is expected to become the largest source of lithium in the Western Hemisphere upon its commencement in 2028. The project was approved by Trump during his first term and secured the federal loan during Joe Biden’s tenure as President.

The Toronto-based miner reportedly offered a 5% to 10% stake in the company as well as funds to cover any fees incurred by changing the amortization schedule to close the loan.

Retail sentiment on Stocktwits about Lithium Americas was in the ‘extremely bullish’ territory at the time of writing.

The project has garnered bipartisan support amid U.S. efforts to reduce its reliance on China, which is the world’s third-largest lithium producer and controls approximately 75% of the refining capacity of the metal used in electric vehicle batteries.

Presently, the U.S. produces 5,000 tons of lithium in an Albemarle facility; however, the first phase of Thacker Pass is expected to produce 40,000 tons of Lithium, enough to power 800,000 EVs.

The report stated that General Motors, which invested $625 million in the mine to win a 38% stake, has the right to buy all the lithium output from the first phase of the project and a portion from the second phase for 20 years. However, Trump officials are now seeking a guarantee that GM will buy the metal.

Trump officials are also reportedly nudging GM to relinquish its control over parts of the project and transfer them to the federal government, according to the report. GM dubbed the loan a “necessary part of the financing to commercialize this important national resource” and reportedly added that Trump “strongly supported” the mine in his first term.

“Load up! MP ran from $22 to $80 on Trump and Apple News. We could run to $50 on confirmation,” one Stocktwits user said, noting the gains made by rare earth miner MP Materials after the Pentagon grabbed a stake in the company, which was announced as a supplier of Apple.

Another user noted that the construction of the mine was “moving fast,” and the Trump administration will expedite the process.

Lithium America’s U.S. shares have gained 2.3% this year, amid Chinese overproduction and a slowdown in EV output in some territories.

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