(Updates with mid-morning shares, analyst comments)

By Twesha Dikshit

Sept 24 (Reuters) - Canada's benchmark stock index rose

on Wednesday, boosted by energy shares, after crossing the

30,000-point threshold for the second straight day.

Toronto's commodity-heavy S&P/TSX composite index

added 0.3% to 29,912.19 points by 10:20 a.m. ET (1420 GMT).

The S&P/TSX smallcap index rose 1.1% after

Reuters reported that the Trump administration is seeking an

equity stake of as much as 10% in Lithium Americas ( LAC ),

boosting the Canadian company's shares by 88%.

Its U.S.-listed shares jumped 85%.

"It is unclear if/how the DOE loan could be renegotiated and

if there will be any legal ramifications," J.P. Morgan analysts

said in a note.

"It's difficult to quantify what fair value a 10% government

stake should be valued at amid unanswered questions such as

what, if any, revised offtake agreement(s) could look like."

Energy stocks led sectoral gains with a 2.3% rise,

as Vermilion Energy ( VET ) climbed 4.7%.

Materials stocks rose as First Quantum

and Teck Resources ( TECK ) climbed 6% and 5.5%, respectively.

Hudbay Minerals ( HBM ) said the temporary shutdown at its

Peru mill would not affect its ability to meet 2025 production

and cost forecast range, sending its shares up 6.7%.

Technology shares recovered from a dip in the

previous session. Open Text Corp ( OTEX ) and Constellation

Software ( CNSWF ) rose 4.6% and 3%, respectively, while

BlackBerry gained marginally ahead of quarterly results.

Flash estimate data showed that Canada's factory sales

likely dropped 1.5% in August due to lower sales in

transportation equipment and food product subsectors.

Meanwhile, Prime Minister Mark Carney said he had

"constructive" trade talks with Chinese Premier Li Qiang as the

countries seek to discuss trade conflicts.

Separately, Carney said trade negotiations with the U.S.

were ongoing, with remaining issues to move to a forthcoming

review of the U.S.-Mexico-Canada trade agreement.