Shares of Lithium Americas Corp. (LAC) surged 32.22% in pre-market trading on Wednesday, following a significant announcement regarding U.S. government involvement in the company. The sharp uptick came after U.S. Energy Secretary Chris Wright revealed that the government has agreed to take equity stakes in both Lithium Americas and its Thacker Pass lithium project.

According to sources familiar with the negotiations, the U.S. Department of Energy will acquire a 5% stake in Lithium Americas and a separate 5% stake in the company's Thacker Pass lithium mine joint venture with General Motors. This move is part of a broader effort by the Trump administration to strengthen the domestic supply chain for critical metals used in defense, automaking, and consumer electronics, reducing reliance on China.

The investment comes as part of a restructured $2.26 billion loan agreement between Lithium Americas, General Motors, and the U.S. Department of Energy. Key terms of the deal include a five-year deferral of $182 million in debt service and the first $435 million draw on the loan. This development is seen as a strong vote of confidence in the company's strategic importance to the U.S. energy sector and could have far-reaching implications for its future projects. The Thacker Pass project, slated to become the largest source of lithium in the Western Hemisphere, is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year, enough for up to 800,000 electric vehicles.