Quotes of Canadian Lithium Americas, developing in the United States one of the largest deposits of lithium - a key raw material for electric car batteries, doubled. The excitement was caused by a leak from the White House: the U.S. government is negotiating the acquisition of a stake in the project.

Details

Shares of Lithium Americas, traded on the New York Stock Exchange, jumped 98.7% in the September 23 postmarket. Quotes went up after Reuters reported, citing sources, that the administration of President Donald Trump claims a 10 percent stake in the mining company. Lithium Americas is developing the Tucker Pass lithium deposit in Nevada, one of the largest in the United States.

According to Barron's, the White House expects to take a stake in Lithium Americas in exchange for restructuring a $2.3 billion loan from the U.S. Department of Energy under previous President Joe Biden. "It's a great deal in the critical minerals sector," a Trump administration official told the publication. He declined to say the exact size of the stake in the company claimed by the government.

Context

In December 2024, Lithium Americas announced a joint venture with GM in which the Canadian company holds a 62% interest in the Tucker Pass project and GM holds the remaining interest. The mine is scheduled to be operational by 2028.

The Trump administration has recently agreed to acquire stakes in several companies. The U.S. government received a 10 percent stake in Intel by converting a grant from the Biden administration. In July, the U.S. Department of Defense became the largest shareholder in MP Materials, which owns the country's only rare earth element mine, Mountain Pass.

This article was AI-translated and verified by a human editor

Share