It was Lithium Americas that saw the biggest increase, having shot up almost 80% in the Wednesday morning trading. At least one thing is certain The Trump administration is looking to gain an equity stake in the Vancouver-based company. That’s why we’ve experienced a huge surge in demand. Even just the discussions on this potential investment are encouraging. While the required consultation sounds laborious, they show undeniable strong interest from federal officials in ensuring and supporting Lithium Americas’ operations.
The Trump administration targets Lithium Americas. As such, this decision aligns with Albemarle’s overall strategy of increasing domestic lithium production, an important mineral used to help power electric vehicle batteries and other renewable energy technologies. The company’s Thacker Pass lithium mine in Nevada has become a lightning rod of this effort. They own a majority 62% stake and are deeply engaged in the day-to-day operation of the facility.
Earlier this month, Lithium Americas and General Motors (GM) dug in heels on a short-term, $650 million loan. This loan was meant to be a catalyst for the Thacker Pass project. The original loan terms did not meet the criteria required for the first disbursement, requiring amendments and adjustments.
An official from the Trump administration commented on the negotiations, stating, “If we’re going to push out part of the repayment into later years, then the administration would like a very small stake of equity to create essentially a cash buffer and eliminate some risk on behalf of taxpayers.”
Negotiations continue to take place. While the investment is large enough, it’s still not clear whether Canadian regulatory bodies would require the investment to be approved owing to Lithium Americas’ jurisdiction. And though no formal deal has been reached, optimism on both sides seems to be growing.
Lithium Americas is in fact moving rapidly on several fronts and not only in Nevada. They’re currently running a test and development facility in Reno, where workers are developing new forms of lithium processing. With lithium demand booming, the sector has been made hot by lithium hype. That excitement is evident in the doubling of MP Materials shares after a recent merger deal.
Or maybe not, as Lithium Americas is happily playing chicken with these changes. They are spearheading the future of an industry that is central to transitioning our nation and our world to a more sustainable energy future. The clock is ticking. Stakeholders are understandably holding their breath as negotiations continue with the Trump administration. They want to know what these discussions will mean for the company’s future initiatives.