Lithium Americas Stock Soars 90% After Trump Announces 10% Stake Purchase

Shares of Lithium Americas became the center of attention on Tuesday evening after President Donald Trump confirmed that the U.S. government plans to purchase a 10% stake in the company, according to Reuters. The stock skyrocketed nearly 90% in after-hours trading, climbing from around $3 to $5.54.

Renegotiating a $2.26 Billion Loan The move is part of a broader Trump administration strategy to reopen the terms of a massive $2.26 billion loan tied to the Thacker Pass project in Nevada, considered the future largest lithium source in the Western Hemisphere. The White House is using negotiations as leverage to secure both capital and direct ownership. Thacker Pass, located about 40 kilometers from the Oregon border, has been under construction for over a year and is expected to start production in 2028. Once operational, it could yield 40,000 metric tons of lithium carbonate annually—enough to power up to 800,000 electric vehicles. More than 600 workers are currently on-site.

Trump Links Federal Cash to Ownership According to White House officials, the proposed stake aligns with Trump’s broader plan to inject federal capital directly into industries deemed critical for national security. Similar efforts previously targeted Intel and MP Materials. Lithium Americas is currently valued at roughly $750 million. “President Trump supports this project. He wants it to succeed while ensuring fairness for taxpayers,” said a White House official. “But there is no such thing as free money.” The original 24-year loan, arranged under President Joe Biden, was issued through the Department of Energy’s Loan Programs Office (LPO) with interest tied to U.S. Treasury rates. Lithium Americas was supposed to draw its first tranche this month, but the process was paused after Trump’s team raised concerns about repayment amid falling lithium prices caused by China’s oversupply. Talks now focus on restructuring the amortization schedule rather than altering interest rates or total repayment. In response, Lithium Americas has offered no-cost warrants for 5–10% of its shares plus funds to cover additional fees.

General Motors Faces Pressure Over Control The negotiations also involve General Motors (GM), which invested $625 million last year for a 38% stake in Thacker Pass. GM currently holds exclusive rights to purchase all lithium from the first production phase and a portion from the second phase for the next 20 years. The White House is pressing GM to guarantee the purchases while surrendering parts of the project to federal oversight. GM considers the federal loan vital for building its EV battery supply chain. “We believe the project aligns with administration goals,” a GM spokesperson said, adding that Trump “strongly supported” Thacker Pass during his first term.

Lithium as a Geopolitical Priority Thacker Pass has long been seen as one of the rare bipartisan issues in Washington, as both Republicans and Democrats agree on the need to reduce dependence on China. China mines over 40,000 metric tons of lithium annually and refines more than 75% of the global supply. By contrast, the U.S. currently produces less than 5,000 metric tons per year, entirely by Albemarle in Nevada. Thacker Pass alone could dramatically shift that balance.

Company Response Lithium Americas has reassured investors that negotiations remain ongoing. “We respect LPO’s decision to restructure and continue active discussions with the Department of Energy and our partner GM. We will provide updates in due course,” the company said in a statement.

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