Another Wall Street stock jumps 100% in a day on news of Trump administration seeking stake

Shares of Lithium Americas, a Vancouver, Canada-based mining company, with a $1.5 billion market capitalisation, surged over 100% on Wednesday, September 24, marking yet another instance of a stock on Wall Street seeing outsized gains in a single session. The stock had surged 67% in extended trading on Tuesday.

Lithium Americas surged on reports that the White House is seeking an equity stake in the company as it renegotiates terms of a $2.2 billion loan from the US Energy Department for its Thacker Pass mine in Nevada. The equity stake story was first reported by Reuters.

The Thacker Pass mine is said to become one of the largest sources of Lithium in North America when the first phase of the project becomes operational towards the end of 2027. The project is owned by Lithium Americas (62%) and General Motors (38%). The latter has promised to offtake from the mine once it becomes operational.

White House officials said that the proposal for an equity stake was made when the companies proposed that a part of the loan repayment be pushed to later years.

“If we’re going to push out part of the repayment into later years, then the administration would like a very small stake of equity to create essentially a cash buffer and eliminate some risk on behalf of taxpayers,” the official said.

The deal is yet to be finalised. The US Department of Defence recently acquired stake in US-based MP Materials, and the stock has more than doubled in value since then.

Lithium Americas shares ended 96% higher on Wednesday at $6.01.

(With Inputs From Agencies.)