The stock of miner %LithiumAmericas (NYSE: $LAC) is up an astounding 70% on reports that the administration of U.S. President Donald Trump is negotiating a stake in the company.
Lithium Americas is developing a lithium deposit in Nevada to extract the mineral that’s a critical ingredient in electric vehicle batteries.
The U.S. government, under President Trump, is proposing to take an equity stake in the company in order to provide Lithium Americas with a $2.3 billion U.S. Energy Department loan.
Media reports claim that the U.S. government is considering a stake in the Nevada lithium project of as much as 10%.
In a written statement, Lithium Americas said that it remains in “active discussions” with U.S. government officials about the terms of the loan.
A complicating factor in the proposed equity stake is that Lithium Americas is actually based in Vancouver, Canada and is incorporated as a Canadian entity.
Late last year, Lithium Americas entered a joint venture with U.S. automaker %GeneralMotors (NYSE: $GM) in which Lithium Americas owns 62% of the Thacker Pass mine site in Nevada.
General Motors owns the other 38% of the Nevada %Lithium mine project that is expected to be operational by 2028.
The U.S. government has announced stakes in several publicly traded companies this year, including a 10% equity position in chipmaker %Intel (NASDAQ: $INTC).
Earlier this year, the U.S. government invested $400 million U.S. in rare earth miner %MPMaterials (NYSE: $MP).
The Trump administration aims to boost manufacturing in the U.S. and secure the country’s commodities through increased investments.
Prior to today (Sept. 24), Lithium Americas stock gained 0.33% this year to trade at $3.07 U.S. per share.
