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Lithium Americas is putting up meme stock numbers today.
The Canadian mining company exploded 95.77% after Reuters reported that the Trump administration was considering taking a 10% stake in the business. The White House proposed the deal while Lithium America renegotiated the terms of its $2.3 billion loan from the Department of Energy for its Nevada-based Thacker Pass mine, according to Reuters.
The big deal: Lithium is a key raw material for making all kinds of tech, particularly the batteries used in everything from EVs to AI data centers. The Thacker Pass project, which is a joint venture between Lithium Americas and General Motors, is expected to be the biggest lithium mine in the US when it opens its doors in late 2027.
Critical minerals mining has become a national security issue lately, with the US rushing to shore up its own supply chain so it doesn’t have to rely on China. Back in July, the Department of Defense invested $400 million in rare earths miner MP Materials to reduce its dependence on its geopolitical rival, and becoming a shareholder in Lithium Americas furthers that agenda.
Today’s news is also just the latest example of the White House taking a stake in a publicly traded company, as it did with Intel in August. It’s a trend that has worried analysts and investors alike because it could cause conflicts of interest and tie a company’s fortunes to politics.
Then again, investors didn’t seem too bothered today: Other lithium producers popped this afternoon in the hopes of similar government interest, including Albemarle Corp, which jumped 1.81%, and Sigma Lithium Corp, which rose 7.38%.
Should you invest in Lithium Americas, too?
For all of today’s hype, you might be surprised to learn that Lithium Americas has neither profits nor any revenue, given the Thacker Pass project isn’t operational right now. Until that mine opens up, the company will have to rely on borrowed money and borrowed time, and if there are any delays in development, it could spell disaster. And don’t forget, the final details of the US deal haven’t even been agreed upon yet.
On the other hand, Lithium Americas does already have the perfect name to be a state-controlled entity.—LB