Lithium Americas (LAC) Surges 31.78% on Trump Stake, U.S. Clean Energy Transition Push

Lithium Americas (LAC) shares surged 31.78% on October 3, 2025, reaching their highest level since October 2025, with an intraday gain of 36.01%. The rally reflects renewed investor confidence in the company’s strategic positioning within the U.S. clean energy transition.

The Trump administration’s confirmed 5% equity stake in LAC and its Thacker Pass lithium project in Nevada has emerged as a pivotal catalyst. This move aligns with broader U.S. efforts to reduce reliance on China for critical minerals, with the Department of Energy also renegotiating a $2.26 billion loan to support the project. Federal backing underscores the project’s role in securing domestic supply chains for electric vehicle (EV) batteries, a key pillar of national energy security.

Thacker Pass, the largest lithium deposit in North America, is set to produce 60,000 tons of lithium carbonate annually by 2027, sufficient to manufacture 800,000 EV batteries. The project’s high-purity output and proximity to existing infrastructure position it as a cornerstone of U.S. decarbonization goals. General Motors’ $625 million investment further validates its strategic importance, while advanced direct lithium extraction technology reduces environmental risks and operational costs.

Geopolitical dynamics and global EV demand growth are amplifying LAC’s appeal. With China dominating 67-72% of lithium processing, U.S. investments in domestic production aim to mitigate supply chain vulnerabilities. Analysts note that LAC’s pre-revenue status and small-cap profile make it susceptible to volatility, yet its alignment with government priorities and EV market expansion offers long-term growth potential. As the company advances toward commercial production in 2026, sustained policy support and lithium demand trends will be critical to maintaining momentum.