Overview

• Reuters reported the Trump administration is seeking about a 10% equity stake in Lithium Americas as part of a $2.26 billion DOE loan tied to the Thacker Pass project in Nevada.
• A White House official told Reuters the president supports the project and wants terms that are fair to taxpayers.
• Lithium Americas shares hit a record intraday high of $7.53 on Thursday and closed up 22.63% at $7.37 before falling about 13% on Friday after the analyst note.
• Scotiabank, led by Ben Isaacson, urged investors to trim exposure, citing likely dilution from government warrants and set a $2.75 price target.
• Analysts also flagged valuation stretch tied to implied lithium prices near $19,600 per metric ton and noted GM’s 38% stake could complicate ideas to boost U.S. prices by limiting market access.