Lithium Americas Corp. (LAC) shares have surged 175% in less than two weeks, marking a new round of strategic value reassessment for lithium mining assets. The dramatic price increase was triggered by news that the US government plans to acquire up to 10% equity in the Vancouver-based mining company.

Under the agreement terms, the US government will hold a 5% stake in the Vancouver-headquartered company and a 5% share in its Thacker Pass mining project located in Nevada. Lithium Americas Corp. will receive a $435 million loan from the US Department of Energy, with $182 million in debt repayment deferred for the first five years.

This represents one of the few such deals finalized by the current US administration since July this year. Previously in July, US government departments made a $400 million equity investment in MP Materials Corp., a rare earth magnet producer whose stock has risen over 375% year-to-date. In mid-August, after details emerged of the US government's plan to hold nearly 10% equity in troubled chipmaker Intel Corp., Intel's stock has gained over 50% since then. On Monday evening, October 6th, the White House also announced plans to invest in another mining company, Trilogy Metals, causing Trilogy Metals (TMQ) shares to surge 210% on Tuesday.

Lithium Americas Corp. is developing lithium deposits in Nevada to secure critical minerals for battery supply. In December last year, the company announced a $2.26 billion Department of Energy loan for its lithium project. The Thacker Pass mine, located in Humboldt County, Nevada, is expected to begin operations in 2028 and aims to become the largest lithium source in the Western Hemisphere. Lithium Americas Corp. stated in a release that it remains "actively discussing cooperation with the US Department of Energy."

The Thacker Pass lithium mine, situated in northern Nevada, is expected to become one of North America's largest lithium mines. The project is a joint venture between Lithium Americas Corp. and General Motors, with Lithium Americas Corp. holding a 62% stake and operating the mine, while General Motors holds 38%. Once operational, the project is expected to produce 40,000 tons of battery-grade lithium carbonate annually. The Thacker Pass lithium mine under development by Lithium Americas Corp. represents a crucial cornerstone in the US strategy to establish a domestic lithium supply chain for electric vehicle batteries.

With robust demand for batteries from electric vehicles, energy storage systems, and mobile electronic devices, global lithium mining development is accelerating rapidly. Industry experts believe that the rapid development of solid-state batteries and energy storage sectors is reshaping the demand landscape for upstream metal materials. Traditional liquid lithium batteries have an energy density limit of approximately 300Wh/kg, while solid-state batteries easily exceed this threshold, creating higher requirements and greater demand for metals like lithium, nickel, cobalt, manganese, and zirconium.

Under the global new energy revolution wave, the lithium battery industry is rapidly reshaping the energy landscape. In the first half of 2025, China's lithium battery shipments reached 776GWh, a 68% year-over-year increase, with energy storage batteries growing at a remarkable 128%, indicating robust downstream demand in the lithium industry chain. Simultaneously, the release of energy storage market policies and the gradual industrialization of solid-state batteries have sparked market expectations for increased lithium carbonate demand.

Lithium battery industry analysts note that "under current technical conditions, 1GWh of lithium iron phosphate solid-state batteries consume approximately 500-550 tons of sulfide electrolyte, equivalent to 322-353 tons of lithium carbonate demand, roughly 10 times the original liquid electrolyte's lithium carbonate requirements."

Even without considering the impact of metallic lithium anodes, solid-state batteries consume over 50% more lithium carbonate than previous liquid lithium batteries. This means solid-state battery market development will inherently drive up overall lithium carbonate demand, while future technological iterations may trigger intense competition between automotive companies and battery manufacturers for lithium resources, this "white petroleum."

Against this backdrop, lithium demand is beginning to show explosive growth. Taking the sulfide solid-state battery route as an example, single GW solid-state battery consumption of lithium carbonate equivalent reaches 1,482 tons, significantly higher than lithium iron phosphate batteries. By 2030, solid-state battery demand for lithium carbonate is expected to reach 1.14 million tons, nearly 2,000 times growth compared to 2025.

Overall, globally proven economically extractable lithium resource reserves total only 22 million tons of lithium carbonate equivalent (LCE). Based on current lithium demand, approximately 1 million tons are needed annually. If solid-state batteries become widespread in the future, even with just 30% market penetration, lithium demand would surge to 4.2 million tons annually.

The recent 175% surge in Lithium Americas Corp. stock following US government investment reflects that the global battle for lithium resources among major economies has entered a white-hot phase, with lithium mining strategic value potentially entering a new round of revaluation. Therefore, against this backdrop, lithium mining stocks in the A-share market are expected to enter a breakout cycle after the holidays.

Analysis suggests that the injection of Qinghai CITIC Guoan Lithium Industry under CITIC Guoan Industrial Group, the major shareholder of CITIC Niya, may be entering a substantive stage. The company could therefore become a leading enterprise in the lithium metal materials sector. Public information shows that after CITIC Guoan Industrial Group completed restructuring supervision in November 2024, the company's actual controller has changed to CITIC Group. The overall activity level of the M&A market in 2025 is relatively high. In this market environment, the company may more easily find suitable M&A opportunities and partners to promote M&A implementation.

The State-owned Assets Supervision and Administration Commission's "Several Opinions on Improving and Strengthening Market Value Management of Central Enterprise Controlled Listed Companies" clearly states that central enterprises should support controlled listed companies in implementing M&A around improving main business competitive advantages, enhancing technological innovation capabilities, and promoting industrial upgrading. As a central enterprise-controlled listed company, the company can optimize resource allocation through M&A, enhance competitiveness and investment value in its main business areas, thereby better implementing SASAC requirements for market value management.

The opinion also encourages central enterprise-controlled listed companies to accelerate layout in strategic emerging industries and future industries through M&A, cultivating new quality productive forces. If the company can seize this policy opportunity and implement related industry M&A, it will help optimize industrial structure and enhance long-term development potential and market competitiveness.

According to restructuring phase plans, CITIC Guoan Industrial Group plans to focus investment layout around strategic resources like lithium, potassium, and boron, deeply cultivating Xinjiang and Tibet regions. The company is registered in Xinjiang, and injecting such resource development assets could strengthen regional synergy effects while aligning with the national strategy to "accelerate building world-class salt lake industrial bases."

More notably, the company's leadership underwent changes in 2024, with core positions assumed by CITIC Guoan Group personnel. On July 30, 2024, the board appointed Wang Yi as new chairman, replacing Qiao Liang. Beyond the chairman position, other management personnel also changed frequently in 2024. In March 2024, Vice Chairman Su Bin resigned; in May, General Manager Chen Hao also resigned for personal reasons; additionally, Director Xu Qi resigned due to work adjustments, and Independent Director Tang Yang and Staff Representative Supervisor Xu Haiyan also left for different reasons.

Under former Chairman Qiao Liang's leadership, the company proposed developing a "second main business" concept, but no substantial progress has been made to date. With Wang Yi assuming the chairmanship, the market holds strong expectations for his ability to rapidly advance this strategy implementation.

Public information shows that Qinghai CITIC Guoan Lithium Industry Development Co., Ltd. under CITIC Guoan Industrial Group is a core asset, possessing salt lake lithium extraction technology and annual production capacity of 20,000 tons of battery-grade lithium carbonate, with 2023 revenue of 8.91 billion yuan and net profit of 2.79 billion yuan. This business aligns with the group's "Industrial Star Chain Project" strategy, and Qinghai Lithium Industry is currently unlisted.

From the equity structure diagram, both the company and Qinghai CITIC Guoan Lithium Industry Development Co., Ltd. belong to enterprises under CITIC Guoan Industrial Group. According to the company's official website, Qinghai CITIC Guoan Lithium Industry Development Co., Ltd., based in the West Taijinar Salt Lake in Qinghai's Qaidam Basin, is China's first high-tech salt lake chemical enterprise and provincial specialized and innovative enterprise that has achieved comprehensive utilization of salt lake resources including lithium, potassium, boron, and magnesium, along with technology R&D and new material/product development integration.

The company has created multiple domestic firsts: first to extract battery-grade lithium carbonate from salt lakes, first salt lake enterprise to achieve industrial production of sulfate-type potash fertilizer using sulfate-type brine resources while filling the production gap for potassium magnesium sulfate fertilizer, first to achieve large-scale production of industrial-grade lithium carbonate, and first to achieve large-scale application of battery-grade lithium carbonate products. It is a pioneer in comprehensive development and utilization of domestic salt lake resources and a national "Green Mine" unit.

In recent years, Qinghai Lithium Industry has completed a "three-level leap" in project construction from 20,000-ton battery-grade lithium carbonate projects to 15,000-ton battery-grade lithium carbonate replacement projects to resource recovery comprehensive utilization projects. In process flows, it has achieved "five-step upgrades" from calcination method to pure membrane method to adsorption method to "adsorption + membrane" to "adsorption + membrane + tail liquid recovery treatment." In just three years, battery-grade lithium carbonate production capacity leaped from less than 7,000 tons/year to 50,000 tons/year, achieving a curve overtaking to become the domestic industry's number one leading enterprise.

As an industry pioneer with 1 national-level and 2 provincial-level research platforms, Qinghai CITIC Guoan Lithium Industry Development Co., Ltd. has accumulated 29 patents, participated in formulating 4 industry standards, won 15 various scientific and technological awards, and achieved 18 important scientific and technological achievements.

In fact, the company had previously planned to inject Qinghai Lithium Industry years ago. In October 2017, after a three-month trading suspension, the company published a reorganization plan on October 9, 2017. The announcement stated that the company intended to purchase 100% equity of Qinghai Guoan Lithium Industry held by its controlling shareholder's subsidiary through non-public issuance of shares at 6.71 yuan/share. Upon completion, the company would add salt lake resource comprehensive development and utilization business mainly focused on lithium carbonate and potash fertilizer, entering the new energy sector. On June 9, 2018, the company announced termination of the reorganization to acquire Qinghai Guoan Lithium Industry assets from its major shareholder.

Notably, on June 2, 2022, Beijing First Intermediate Court ruled to implement substantive consolidated restructuring for seven companies including CITIC Guoan Group Co., Ltd., CITIC Guoan Co., Ltd., CITIC Guoan Investment Co., Ltd., CITIC Guoan Urban Development Holdings Co., Ltd., Hebei Guoan First City Scenic Area Management Co., Ltd., Qinghai CITIC Guoan Technology Development Co., Ltd., and Qinghai CITIC Guoan Lithium Industry Development Co., Ltd.

This consolidated restructuring decision stemmed from the Guoan Group administrator's application, citing that the seven companies had "highly mixed corporate personalities, excessive costs to distinguish the seven companies' assets, and that separate restructuring of Guoan Group would seriously damage creditors' fair repayment interests." The consolidated restructuring aimed to achieve profitability through resource integration and capital operations, finding the highest quality assets and suitable listed company platforms to inject quality assets into listed company platforms, raise funds from capital markets, revitalize assets, and realize creditor rights.

In February 2023, CITIC Guoan Group and six other companies began substantive consolidated restructuring. Under the restructuring agreement, CITIC Guoan retained assets and selected debt repayment obligations were packaged together to establish the new Guoan Group - CITIC Guoan Industrial Group, achieving a fresh start. The old CITIC Guoan Group remained to continue disposing of remaining non-performing assets and repaying creditor debts. In this restructuring process, Qinghai Lithium Industry, as the highest quality asset, was retained in CITIC Guoan Industrial Group, becoming a core component of its advanced materials segment.

Facing intense market competition, Qinghai Lithium Industry has established a leading position in the industry through technological upgrades and capacity expansion. With the future explosion of solid-state battery and energy storage markets, Qinghai Lithium Industry is expected to continue maintaining competitive advantages and achieve greater development.