Shares of Canada-based Lithium Americas—whose only lithium mine in production is in South America’s lithium triangle—skyrocketed 338% in 2023 before surging more than 69% on the news alone. That sudden jump follows news from Reuters that the Trump administration is considering purchasing a portion of the firm. Worse, they are actually thinking of limiting their stake to as low as 10%. The administration’s interest comes as it renegotiates terms for an Energy Department loan connected to Lithium Americas’ Thacker Pass project, which is poised to become a significant source of lithium for the production of batteries.
Even then, the Thacker Pass project will only start production in 2028. It’s garnered international attention, in part because it would be by far the largest lithium brine deposit in the Western Hemisphere. General Motors is a 38% owner of this project. This stake represents the automotive giant’s firm commitment to locking down lithium supplies for EV batteries and other applications.
Lithium Americas’ stock has surged an impressive almost 98% so far in 2023. That remarkable increase dwarfs the S&P 500’s own returns of more than 13%. Just in the past month, its stock is up an amazing 41% … 41% just in the past month! Investor optimism drives this boom as demand for lithium skyrockets, making the lightweight metal a crucial factor in EV batteries and grid-scale storage solutions.
The Trump administration’s possible stake in Lithium Americas highlights the administration’s desire to increase U.S. lithium production. This effort supports more wide-ranging national efforts to ensure we are able to find and secure domestic resources key for the growing EV market.
Lithium Americas’ stock jumped approximately 75% following the news of the Trump administration’s interest, reflecting strong market enthusiasm for the company’s future.
The Thacker Pass project is expected to play a pivotal role in meeting the rising demand for lithium as electric vehicles gain popularity. As the project moves towards its 2028 production target, stakeholders are excited about the potential impact on the lithium market.
On the demand side, analysts expect robust pricing and demand dynamics for lithium to continue. They believe that trend will continue through at least 2026. “We believe the fundamental setup remains favorable through CY26, with expectations for sequential average selling price improvements and bit shipment growth well into next year,” stated Harlan Sur, reflecting confidence in the sector’s trajectory.