Shares of Lithium Americas surged by over 35% in after-hours trading on Tuesday following remarks from U.S. Energy Secretary Chris Wright to Bloomberg that the U.S. government is set to acquire a minor share in the company.
The U.S. Department of Energy intends to obtain a 5% equity interest in Lithium Americas along with an additional 5% interest directly in the Thacker Pass initiative of the Canadian miner, as stated by Wright during an interview with Bloomberg Television. General Motors holds a minority interest in the lithium mine situated in northern Nevada.
Thacker Pass is anticipated to emerge as one of the largest lithium sources in North America, with the initial phase of the project aiming to commence operations by late 2027.
“We’ll have ownership of the mine itself and through the corporate entity that is developing the mine,” Wright articulated on air on Tuesday.
This represents the latest strategy by the White House to gain direct involvement in the essential mineral supply chain important to U.S. interests, marking the first stake of its kind intended for a Canadian firm. Lithium Americas is listed on both the Toronto Stock Exchange and the NYSE, yet is incorporated and based in Canada.
“This just makes economic sense,” Wright commented. “Lithium Americas needs to secure additional funding to ensure the mine’s financial stability. We are stepping in with a significant amount of debt capital. Thus, it’s a more commercial venture to confirm that lithium will be extracted and processed within the United States.”
Shares of Lithium Americas have leaped by 92% this year, with a considerable portion of these increases fueled by news of the government’s impending stake acquisition.
