US Energy Secretary Chris Wright announced that the US government has agreed to acquire shares in Lithium Americas Corp. (LAC.US), confirming reports from last week that triggered a significant surge in the company's stock price. Following this news, Lithium Americas Corp. rose 35.3% in after-hours trading on Tuesday.

After news emerged about potential US government investment, Lithium Americas Corp. announced this week that the company and its joint venture partner General Motors (GM.US) have been in discussions with the US Department of Energy regarding terms for a $2.3 billion federal loan.

Lithium Americas Corp.'s approximately $3 billion Thacker Pass project received approval at the end of Trump's first presidential term, while the loan from the US Department of Energy's Loan Programs Office was completed and disbursed by the Biden administration last year. General Motors is relying on the Thacker Pass project to meet the majority of its lithium requirements for its electric vehicle transition.

Additionally, reports indicate that the US Department of Energy will hold a 5% stake in Lithium Americas Corp., as well as a 5% stake in the Thacker Pass joint venture formed between the company and General Motors. This move represents the latest effort by the Trump administration to accelerate the development of domestic supply chains for critical minerals.

Earlier this year, the US Department of Defense announced a $400 million investment in MP Materials (MP.US) to fund a new facility for producing rare earth magnets.