Lithium Americas Stock Explodes 90% After Trump Confirms U.S. Will Buy 10% Stake

Lithium Americas just hit the government jackpot—and Wall Street's reacting like it won the lottery.

Policy Shockwaves

The White House just placed a billion-dollar bet on domestic lithium production. Trump's confirmation of a 10% federal stake sent shares vertical—that rare moment when government action actually creates shareholder value instead of destroying it.

Market Frenzy

Traders piled in so fast you'd think they found a loophole in the SEC's rulebook. The 90% surge tells you everything about how starved markets are for tangible infrastructure plays—not another metaverse promise or AI vaporware.

Strategic Reserves Meet Stock Reserves

Suddenly every fund manager remembers lithium actually powers things—like the electric vehicle revolution Washington keeps hyping. Funny how a little government validation makes analysts forget all those supply chain concerns they've been complaining about for quarters.

Because when the Treasury Department becomes your anchor investor, even the most cynical short-seller has to acknowledge the fundamentals just shifted. Though let's be real—90% moves tend to attract more momentum chasers than long-term believers.

Trump ties government cash to direct ownership

The proposed stake follows Trump’s playbook of pushing federal cash into sectors his administration sees as vital to national security. That includes earlier moves into Intel and MP Materials. This time, it’s Lithium Americas, a company valued at about $750 million, that’s in the crosshairs.

“President Trump supports this project. He wants it to succeed and also be fair to taxpayers,” said a WHITE House official. “But there’s no such thing as free money.”

The original 24-year loan, set up by the Department of Energy’s Loan Programs Office, was signed off under President Joe Biden. It comes with interest tied to the U.S. Treasury rate. Lithium Americas was scheduled to draw the first tranche earlier this month, but talks were put on pause after Trump officials raised red flags about the company’s ability to repay, citing low lithium prices triggered by China’s overproduction.

The equity demand came up during discussions about changing the amortization schedule, not the interest or total repayment. In response, Lithium Americas offered no-cost warrants equal to 5% to 10% of its shares, plus funds to cover extra fees.

The government already built in safety triggers in the original loan agreement. If the project is delayed or goes over budget, Washington has options to take control of the site.

White House pushes GM to give up project control

General Motors, which owns a 38% stake in Thacker Pass after investing $625 million last year, is also being dragged into the renegotiation. GM currently has the exclusive right to purchase all the lithium from the mine’s first phase, and a share of phase two, for the next 20 years. The White House now wants a firm guarantee from GM to actually buy the lithium and is demanding that GM hand over parts of the project to federal control.

GM is treating the federal loan as essential to building out its electric vehicle battery supply chain. “We’re confident in the project, which supports the administration’s goals,” said a GM spokesperson. The company added that Trump “strongly supported” the mine during his first term.

The mine has long been treated as a rare point of agreement between Republicans and Democrats. Everyone in D.C. seems to want to cut reliance on China, which produces over 40,000 metric tons of lithium per year and refines more than 75% of the world’s supply.

By contrast, the only U.S. lithium output right now is less than 5,000 metric tons, produced by Albemarle in Nevada. Thacker Pass’s first phase alone is expected to push out 40,000 metric tons of battery-grade lithium carbonate per year, enough to power 800,000 electric vehicles.

As of now, Lithium Americas says it’s still negotiating. “We respect the LPO’s decision to pursue a restructure and remain in active discussions with the Department of Energy and our partner, GM, and will provide an update at the appropriate time,” the company said in a statement.

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