Shares of Lithium Americas Corp. (LAC) surged 19.09% in after-hours trading on Tuesday, following a significant announcement regarding U.S. government involvement in the company. The sharp uptick came after Bloomberg reported that the U.S. Energy Department has agreed to take an equity stake in the lithium producer.

According to U.S. Energy Secretary Chris Wright, the government's decision to acquire an equity interest in Lithium Americas marks a notable development in the country's efforts to secure critical minerals for clean energy technologies. This move is likely seen by investors as a strong vote of confidence in the company's strategic importance to the U.S. energy sector.

The after-hours stock rally reflects the market's positive reaction to this news, as it potentially implies enhanced financial stability and government support for Lithium Americas. This development could have far-reaching implications for the company's future projects and its role in the growing lithium market, which is crucial for electric vehicle batteries and renewable energy storage solutions.