Lithium Americas Corp. (LAC), a mining company specialized in lithium mining, has grown this week by more than 55 percent.
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The explanation for the sudden rise in shares is a 5-year deal signed by Tesla with Chinese lithium miner Yahua International Investment and Development for the supply of lithium to Tesla. Another factor was the official announcement of Joe Biden as the next U.S. President, which drove the markets generally but clean energy stocks especially, as it opened the path to a Green New Deal.
Lithium Americas also recently get a positive Wall Street recommendation on December 23. Analysts at Stifel initiated their “Buy” recommendation for LAC shares and set the target price to $13.25 which the company has crossed this Monday. Lithium Americas can boost its output by expanding its mining ventures in Argentina and the state of Nevada, according to experts. The firm will become one of the world’s biggest producers of lithium due to these ventures.
In August, Lithium Americas reported that the Cauchari-Olaroz lithium mining and processing facility in Argentina had completed 47% of the construction work and 75% of the capital expenditure. Significant progress has been made in the construction of evaporation sites that are used to extract raw materials for the production of lithium, according to the company.
The Thacker Pass Company in Nevada is already operating and has issued a batch of 15 tons of high-quality lithium sulfate after a break due to COVID-19. This is a test batch preceding the beginning of mass production. A special aspect of the Nevada project is that the lithium supply chain, which is part of the US policy to minimize resource reliance on other countries, should be improved within the world.
In October of this year, US President Donald Trump signed an executive order declaring the mining industry to be in a state of emergency, stating that he was “particularly concerned” that 80% of its rare earth elements were imported directly from China. The order specifies, in particular, that the United States should broaden its mining and processing capability. One of the beneficiaries of the new strategy will likely be Lithium Americas.
Lithium Americas Corp. (LAC) jumped 18.76% on Thursday to conclude the session at $18.99.