Lithium Americas Corp. (LAC) stock surged 32.92% in after-hours trading on Tuesday following a significant announcement regarding U.S. government involvement in the company. The sharp uptick came after U.S. Energy Secretary Chris Wright revealed on Bloomberg TV that the government has agreed to take an equity stake in the lithium producer.

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 the Trump administration's efforts to strengthen the domestic supply chain for critical metals used in defense, automaking, and consumer electronics, reducing reliance on China.

The government's investment in Lithium Americas follows recent stakes in other companies like Intel and MP Materials. It comes as Lithium Americas and General Motors have been in talks with the Energy Department regarding conditions for accessing a $2.3 billion federal loan for the Thacker Pass project in Nevada, which is set to become one of North America's largest sources of lithium chemicals. 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 and role in the growing lithium market, crucial for electric vehicle batteries and renewable energy storage solutions.