Lithium Americas Corp (NYSE:LAC) shares had surged over 90% by noon on Wednesday, fueled by a flurry of government actions, General Motors Co (NYSE:GM) commitments, and retail investor fervor. The rally has triggered a Golden Cross, a bullish indicator signaling positive momentum ahead.
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The spark? Reports that the Trump administration is seeking up to a 10% equity stake in the company's Thacker Pass lithium project as part of a DOE loan renegotiation.
Related: Trumps Wants A Stake In Lithium Americas For National Security
Government Gets A Seat At The Table
Bloomberg first reported the DOE was reevaluating Lithium Americas's $2.3 billion loan, citing concerns over cheaper Chinese lithium. Reuters then added fuel to the fire, revealing the administration's intent to secure equity and require GM — the sole Phase 1 offtaker — to relinquish some control over the project.
JPMorgan analyst Bill Peterson notes that "GM's buy-in offers some support for Thacker Pass' continued development." However, he cautions that the details of any revised loan or offtake agreements remain unclear.
Lithium Americas' move to offer no-cost warrants for 5–10% of its shares could dilute shareholders if exercised, adding another layer of uncertainty. "While a government stake is not unprecedented — think INTC or MP Materials — fair value for a 10% equity position is difficult to quantify amid unanswered questions," Peterson added.
LAC Stock Makes A Golden Cross
On the charts, LAC has triggered a Golden Cross, with its 50- and 200-day simple moving averages (SMAs) undergirding the bullish case. The MACD (moving average convergence/divergence) is at 0.31, while the RSI (relative strength index) has risen to an overbought level of 86.5. The 20-day SMA supports the short-term bullish momentum, although slight selling pressure is present.
Analysts suggest the post-market surge is likely amplified by low liquidity and a short interest around 12% of the float, creating a classic short-squeeze environment.
Bigger Picture: U.S. Strategy In Critical Materials
The Lithium Americas saga highlights a broader trend: the U.S. government appears increasingly willing to take direct equity stakes in companies vital to domestic supply chains, particularly where China dominates. Peterson sees this as a potential template for other DOE-backed firms like Plug Power Inc (NASDAQ:PLUG) or EVgo Inc (NASDAQ:EVGO), though strategic importance will likely dictate which companies are next.
Lithium Americas's moonshot underscores the collision of policy, retail momentum, and technical bullishness. While the stock's surge may seem extreme, the story reflects a new era in which Washington is becoming an active equity investor in critical materials.
For lithium bulls, Thacker Pass is now about politics as much as chemistry.
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