Trump reveals major move.

Stimulated by news that the Trump administration is seeking an equity stake, Lithium Americas Corp's stock price surged dramatically in after-hours trading, skyrocketing over 85% at one point. According to the latest reports from US media, the US government is seeking to acquire up to 10% equity in the company.

It is reported that Lithium Americas Corp is jointly developing the largest US lithium mine, Thacker Pass, with General Motors. The lithium mine is expected to begin operations in 2028 and will become the largest lithium resource supply location in the Western Hemisphere. Therefore, this project is viewed by the US government as a key pathway to enhance America's critical mineral production and reduce external dependence.

**Sudden Surge**

On September 23rd Eastern Time, Reuters reported that industry insiders said the US government is seeking to acquire up to 10% equity in Lithium Americas Corp, hoping to gain rights to America's largest lithium mine. The White House is currently renegotiating the terms of a $2.3 billion loan (approximately 16.4 billion yuan) from the US Department of Energy to Lithium Americas Corp.

The report stated that this loan was originally approved during the Biden administration. Trump administration officials indicated that the White House's proposal to take an equity stake in the company is to renegotiate this loan, calling this move "an important critical mineral deal."

Stimulated by the above news, Lithium Americas Corp's stock price surged dramatically in US after-hours trading, rising over 85% at its peak. As of 12:30 Beijing time on September 24th, the gain reached 82.41%.

Reuters commented that this equity investment is the latest example of the Trump administration's direct intervention in the US economy. The US government has previously taken stakes in American technology and mineral companies such as Intel and MP Materials to promote industries it considers crucial to national security.

The Trump administration's focus on Lithium Americas Corp may be related to the Thacker Pass lithium mine project, which plays a pivotal role in the development of America's lithium supply chain.

General Motors announced in February this year that it would invest $650 million in Lithium Americas Corp to jointly develop Thacker Pass, the largest lithium mine in the US, located in northern Nevada. The lithium mine is expected to begin operations in 2028 and will become the largest lithium mining site in the Western Hemisphere, capable of providing raw materials for up to 1 million electric vehicles annually. According to the agreement, Lithium Americas Corp will hold 62% equity in the project, while General Motors will hold 38%.

The mine site is located approximately 25 miles (40 kilometers) south of the Nevada-Oregon border and has been under construction for nearly a year, with over 600 contractors working at the site.

It is reported that Lithium Americas Corp is renegotiating with General Motors the terms of the $2.26 billion Department of Energy loan obtained for its lithium mine project.

From an equity structure perspective, if the US government ultimately succeeds in acquiring 10% of Lithium Americas Corp's shares, it could become one of the company's largest shareholders.

**How Significant is the Impact?**

The Thacker Pass lithium mine project is viewed as a key component in building America's domestic lithium supply chain, aligning with the US government's long-term strategy to increase American lithium production.

According to Reuters, a White House official stated: "President Trump strongly supports this project. He wants the project to succeed while also being fair to taxpayers - there's no free lunch."

This project has long been viewed by the US government as a key pathway to enhance America's critical mineral production and reduce external dependence. Currently, the US only produces less than 5,000 tons of lithium annually at Albemarle's facility in Nevada. The first phase of the Thacker Pass lithium mine project is expected to produce 40,000 tons of battery-grade lithium carbonate annually, meeting the needs of 800,000 electric vehicles.

Additionally, other companies engaged in large US lithium mine projects include ioneer, ExxonMobil, and Standard Lithium.

The Thacker Pass lithium mine project was approved at the end of Trump's first term. The project is funded by a loan from the US Department of Energy's Loan Programs Office (LPO) and was completed for approval by Biden administration officials last year. The loan term is 24 years, with interest rates determined based on US Treasury rates at the time of each drawdown.

According to industry insiders, Lithium Americas Corp was originally scheduled to make its first loan drawdown earlier this month, but Trump administration officials, citing low lithium prices, expressed concerns about the company's repayment ability and attempted to renegotiate loan terms.

An industry insider revealed that the US government's equity stake requirement was raised during recent discussions about loan amortization schedules. In response to the equity proposal and to facilitate the loan agreement, Lithium Americas Corp proposed to the government early this week to provide warrant coverage equivalent to 5% to 10% of common stock at no cost and to bear all costs arising from adjusting the amortization schedule.

The source also noted that General Motors invested $625 million in the mine last year to acquire 38% equity, enjoying the right to preferentially purchase all lithium production from phase one and partial production from phase two within 20 years. Trump administration officials are now also seeking guarantees from General Motors for lithium metal purchases and trying to push General Motors to relinquish control over certain aspects of the project and transfer them to the federal government.

Currently, General Motors relies on the Thacker Pass lithium mine project to meet most of the lithium resources needed for its electrification strategy. The company stated that the government-provided loan is "a necessary component of financing the commercialization of this important national resource" and noted that Trump "strongly supported" the mine project during his first term.

A General Motors spokesperson stated: "We are confident in this project, which aligns with the government's development goals."