Lithium Americas stock consolidates near $6.00 following 100% rally

Lithium Americas holds onto 100% gain on Wednesday.
Reuters reported late Tuesday that the Trump administration is considering an equity stake.
Administration officials are intent on renegotiating Lithium America's $2.3 billion government loan.
Lithium Americas owns Nevada's Thacker Pass mine, which could become the largest lithium-producing mine in the world one day.

Clay Webster FXStreet

Lithium Americas (LAC) stock is settling out near $6.00 on Wednesday after rallying on news that the Trump administration is planning on taking a stake in the venture. Shares of the Thacker Pass owner surged late Tuesday after Reuters reported that the Trump administration was seeking an equity stake of as much as 10% as it attempts to renegotiate Lithium America's $2.3 billion Department of Energy loan.

The first Trump administration (2017-2021) approved the Thacker Pass project in Nevada, and the Biden administration finalized the loan at the start of its term.

Thacker Pass in Nevada is often called the largest measured lithium reserve and resource in the world. It has 14.3 million metric tonnes of lithium carbonate equivalent (LCE) at an average grade of 2,540 ppm, and the company plans on eventually achieving 160,000 metric tonnes of LCE production per year with a proposed mine life of 85 years.

The Reuters article suggests that the administration is interested in boosting Lithium Americas' ability to repay the Department of Energy loan, as well as getting General Motors (GM) to agree to buy all production in the initial phases. General Motors purchased 38% of the mine in 2024 for $625 million.

Lithium Americas stock charts

Lithium Americas stock shot up from near $3.00 in Tuesday's post-market, initially fell to a low of $4.55 in Wednesday's pre-market before surging as high as $6.30 by lunchtime.

LAC traded within an ascending wedge formation on Wednesday morning before trading out the side of the formation and consolidating around $6.00. The 5-minute chart below shows there is suggested support between $5.00 and $5.15.

LAC 5-minute stock chart

The long-term weekly chart shows that the nearest target is the $6.42 former resistance level that stems from the late 2017/early 2018 period. A break above $6.42 would allow bulls to pine for the $7.50-$8.00 range, which acted as support in 2021 and then as resistance in 2024.

A further resistance-turned-support level sits at $10.00, but traders know that the entire bull thesis for the present moment turns on what the Trump administration does next.

LAC weekly stock chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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