Shares of Lithium Americas Corp. (LAC) surged 5.02% in Thursday's trading session, extending the remarkable 96% rally from the previous day. The continued upward momentum comes as investors remain bullish on reports of potential U.S. government investment in the company.

The Trump administration is reportedly considering taking an equity stake in Lithium Americas as part of a renegotiation of a $2.26 billion Department of Energy loan for the Thacker Pass lithium project in Nevada. This strategic move aligns with the government's efforts to bolster domestic production of critical minerals, particularly lithium, which is essential for electric vehicle batteries and energy storage systems.

Analysts are closely watching the developments, with potential scenarios including the government acquiring up to a 10% stake in the company or implementing purchase guarantees for lithium production. The Thacker Pass project, expected to become one of North America's largest lithium sources, has garnered significant attention due to its strategic importance in reducing U.S. dependence on foreign lithium supplies. As negotiations continue, investors appear optimistic about the long-term prospects of Lithium Americas and its role in strengthening the domestic lithium supply chain.