Trump administration is reportedly angling for a 10% equity stake in Lithium Americas, sending the company’s stock rocketing 80% at Wednesday’s opening bell. It’s the latest episode in Uncle Sam’s reality show of “Shark Tank: National Security Edition,” where loans come with strings attached—and apparently a side of ownership.
Picture this: Lithium Americas, the plucky developer behind the Thacker Pass lithium project, was already knee-deep in renegotiating a $2.26 billion Energy Department loan when the White House decided to RSVP with more than just well-wishes.
Reuters spilled the beans late Tuesday, revealing Trump’s team eyeing that juicy 10% slice to safeguard America’s electric vehicle dreams from foreign fizzles. Because nothing says “energy independence” like the government becoming your nosy next-door neighbor.
The Thacker Pass venture, a lithium hotspot in Nevada’s dusty embrace, isn’t flying solo—General Motors ponied up $625 million for a 38% stake, turning what could have been a solo mining opera into a duet with Detroit’s finest.
Lithium Americas, ever the diplomat, issued a statement promising updates “at the appropriate time,” which in corporate-speak means “soonish, maybe after lunch.” Ongoing chats with the DOE and GM suggest everyone’s playing nice, or at least pretending to while the lawyers circle like caffeinated vultures.
Trump’s not new to this equity tango; he’s been two-stepping through corporate portfolios like a uncle at a wedding who insists on leading. Just last month, Intel’s shares leaped 20% after the administration grabbed a stake, proving that nothing boosts chip morale like a presidential pat on the back.
And MP Materials? Their stock inflated 50% in July when the Pentagon swooped in for 15%, complete with a decade-long promise to buy rare earth goodies at a cushy $110 per kilo—because who doesn’t love a government guarantee against bargain-basement blues?
These moves haven’t just padded portfolios; they’ve sparked a chain reaction funnier than a fireworks mishap. Nvidia, ever the opportunist, tossed $5 billion Intel’s way for a partnership, while JPMorgan and Apple teamed up to finance MP’s dreams, turning “national security” into the hottest networking event since Davos.
Now, with lithium in the crosshairs, it’s as if Trump’s whispering to investors, “Psst, want some stability? It’s got that five-o’clock shadow of federal oversight.”
The market’s reaction was pure comedy gold: LAC shares, fresh off a 7% Tuesday tumble to $3.07, vaulted to $5.50 Wednesday morning, smashing a 52-week high but still trailing its 2023 peak of $12.38 like a marathoner spotting the finish line mirage.
General Motors ticked up 2%, flirting with a five-week pattern that analysts call a “handle on a base”— Wall Street jargon for “looks promising, if you’re into candlestick therapy.” Even lithium heavyweight Albemarle perked up 5%, as if the whole sector got a group text: “Hey, government’s buying in—brb, moonshot.”
But hold the champagne spritzers; not everyone’s toasting. JPMorgan’s analysts, with the enthusiasm of a accountant at karaoke night, deemed the rally “overblown,” pondering the fair value of a 10% Uncle Sam share amid “unanswered questions” about off-take deals.
They stuck with a neutral rating, because nothing kills a buzz like fiscal prudence. Jefferies’ Laurence Alexander, meanwhile, shaved his price target from $8 to $7 but kept the “buy” nod, whispering, “Still a steal, just not the blockbuster we hoped.”
LAC’s stats read like a report card from a straight-A slacker: a 65 Composite Rating (solid B, needs more effort), 70 Relative Strength (flexing those gains), and a 51 EPS Rating (passing, but call your mother).
Investors, keep an eye on IBD watchlists—because in this lithium lottery, the real winner might be the one who sells high before the government picnic turns into a potluck audit.
As Trump reshapes capitalism one stake at a time, one can’t help but wonder: Will the next White House investment be in coffee futures, to fuel those all-night deal-making sessions? Either way, with batteries powering everything from EVs to egos, America’s energy future looks charged—and hilariously federal. Buckle up; the tab’s on us taxpayers.
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