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Investing.com -- Lithium Americas (NYSE:LAC) stock surged 70% after-hours Tuesday following a Reuters report that the Trump administration is seeking an equity stake of up to 10% in the company as part of renegotiations for a $2.26 billion Energy Department loan for its Thacker Pass lithium project.
The loan renegotiations involve the company’s partnership with General Motors (NYSE:GM) for the Nevada-based project, which is expected to become the Western Hemisphere’s largest lithium source when operational in 2028. The site has been under construction for nearly a year with more than 600 contractors working at the location approximately 25 miles south of Nevada’s border with Oregon.
According to sources familiar with the discussions, the proposed equity stake represents the Trump administration’s continued intervention in American industries it considers critical to national security. Similar stakes have been taken in companies like Intel (NASDAQ:INTC) and MP Materials.
"President Trump supports this project. He wants it to succeed and also be fair to taxpayers," a White House official told Reuters. "But there’s no such thing as free money."
The Thacker Pass project is considered essential to Washington’s efforts to establish a domestic lithium supply chain, a key metal used in electric vehicle batteries and other electronics. The project aligns with broader U.S. objectives to reduce dependence on foreign sources for critical minerals.
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