Shares of Lithium Americas soared nearly 90% to $8.32 after news that the Trump administration may take a 10% stake in the miner, part of a $2.26 billion loan deal for the Thacker Pass lithium project in Nevada, aimed at reducing reliance on China in critical minerals refining.

The move reflects Trump’s strategy to boost U.S. production of lithium, crucial for batteries in electric vehicles and electronics, by directly taking stakes in strategic sectors. China dominates lithium refining, processing over 75% of the world’s lithium, while the U.S. seeks to establish a domestic supply chain.

Lithium Americas, in talks with the U.S. energy department and GM, saw its shares surge on the news, with Canadian and U.S.-listed shares up around 97%. The Thacker Pass project, backed by GM’s investment, is expected to start production in 2028, positioning the U.S. for increased lithium production.

An equity stake in the Thacker Pass project could provide price guarantees and derisk strategic projects, similar to the model seen with chipmaker Intel and rare earths MP Materials. This move could support financing, corporate profits, and favorable returns on invested capital, according to analysts.

The news also boosted other lithium miners’ shares, with Albemarle, Sigma Lithium, and SQM all seeing gains during the session. The Trump administration’s push for equity stakes in strategic sectors is part of a broader effort to reduce reliance on China and strengthen domestic production capabilities.

Read more at Yahoo Finance: Lithium Americas soars 90% as Washington considers stake