Shares of Lithium Americas Corp. (LAC) skyrocketed 83.39% in pre-market trading on Wednesday, following reports that the Trump administration is seeking an equity stake of up to 10% in the company. This dramatic surge comes as the U.S. government looks to secure domestic production of critical minerals and reduce reliance on foreign suppliers.

The potential stake is part of ongoing negotiations to renegotiate terms of Lithium Americas' $2.26 billion Energy Department loan for its Thacker Pass lithium project in Nevada. The project, a joint venture with General Motors, is set to become the Western Hemisphere's largest source of lithium when operational in 2028. Lithium Americas confirmed that it remains "in active discussions with the DOE and our partner, GM" regarding the loan and project details.

This move by the Trump administration aligns with broader efforts to boost U.S. manufacturing and secure supply chains for critical materials. The government has recently taken similar stakes in other strategic companies, including Intel and rare earth miner MP Materials. The Thacker Pass project is viewed as crucial for building a domestic lithium supply chain, essential for electric vehicle batteries and other high-tech applications.

Investors are reacting positively to the news, seeing it as a strong vote of confidence in Lithium Americas and the strategic importance of the Thacker Pass project. The potential government stake could reduce financing risks and improve project execution. Additionally, it signals robust policy support for critical minerals development across administrations, potentially de-risking the project further in investors' eyes.