LAC Shares Jump 22.63% on U.S. Thacker Pass Investment Plan

Lithium Americas Corp. (LAC) shares surged 22.63% in a single session, marking a two-day rally of 140.07% and reaching an intraday high of 25.29% on September 25, 2025—the highest level since late 2025. This sharp rebound follows strategic developments and heightened market confidence in the company’s Thacker Pass lithium project in Nevada.

The U.S. government’s proposed investment in LAC has emerged as a pivotal catalyst. President Trump announced plans for federal participation in the Thacker Pass initiative, a $2.4 billion project critical to securing domestic mineral supply chains amid geopolitical tensions with China. The government’s potential 10% stake in the project is expected to accelerate construction timelines and provide LAC with stable funding, reinforcing its role in the U.S. energy transition.

Analysts have also bolstered optimism, with recent upgrades emphasizing LAC’s progress on Thacker Pass and the project’s potential to produce 35,000 metric tons of lithium carbonate annually. This output could supply 300,000 electric vehicles, positioning LAC as a major North American producer. However, challenges remain, including regulatory hurdles and the need for timely completion to meet production targets.

Global lithium supply dynamics have further supported the stock’s rise. A temporary halt in Chinese lithium production in July 2025 created a supply gap, driving demand for U.S.-based producers. LAC’s focus on North American supply chains aligns with surging EV and AI infrastructure demand, though competition from larger firms like Albemarle remains a long-term risk.

Institutional investor activity has added to the stock’s volatility. While some funds have increased holdings, others have reduced positions, reflecting caution over short-term execution risks. Short interest stands at 11.5% of outstanding shares, suggesting potential for a squeeze if momentum continues. Despite this, LAC’s stock remains sensitive to geopolitical shifts and regulatory outcomes, particularly in Canada, where foreign ownership of critical minerals is under scrutiny.