Lithium Americas Corp ( LAC ) shares had surged over 90% by noon on Wednesday, fueled by a flurry of government actions, General Motors Co ( GM ) commitments, and retail investor fervor. The rally has triggered a Golden Cross, a bullish indicator signaling positive momentum ahead.

Track LAC stock here.

The spark? Reports that the Trump administration is seeking up to a 10% equity stake in the company's Thacker Pass lithium project as part of a DOE loan renegotiation.

Related: Trumps Wants A Stake In Lithium Americas For National Security

Government Gets A Seat At The Table

Bloomberg first reported the DOE was reevaluating Lithium Americas's ( LAC ) $2.3 billion loan, citing concerns over cheaper Chinese lithium. Reuters then added fuel to the fire, revealing the administration's intent to secure equity and require GM — the sole Phase 1 offtaker — to relinquish some control over the project.

JPMorgan analyst Bill Peterson notes that "GM's buy-in offers some support for Thacker Pass' continued development." However, he cautions that the details of any revised loan or offtake agreements remain unclear.

Lithium Americas' ( LAC ) move to offer no-cost warrants for 5–10% of its shares could dilute shareholders if exercised, adding another layer of uncertainty. "While a government stake is not unprecedented — think INTC or MP Materials — fair value for a 10% equity position is difficult to quantify amid unanswered questions," Peterson added.

LAC Stock Makes A Golden Cross

On the charts, LAC has triggered a Golden Cross, with its 50- and 200-day simple moving averages (SMAs) undergirding the bullish case. The MACD (moving average convergence/divergence) is at 0.31, while the RSI (relative strength index) has risen to an overbought level of 86.5. The 20-day SMA supports the short-term bullish momentum, although slight selling pressure is present.

Analysts suggest the post-market surge is likely amplified by low liquidity and a short interest around 12% of the float, creating a classic short-squeeze environment.

Bigger Picture: U.S. Strategy In Critical Materials

The Lithium Americas ( LAC ) saga highlights a broader trend: the U.S. government appears increasingly willing to take direct equity stakes in companies vital to domestic supply chains, particularly where China dominates. Peterson sees this as a potential template for other DOE-backed firms like Plug Power Inc ( PLUG ) or EVgo Inc ( EVGO ) , though strategic importance will likely dictate which companies are next.

Lithium Americas's ( LAC ) moonshot underscores the collision of policy, retail momentum, and technical bullishness. While the stock's surge may seem extreme, the story reflects a new era in which Washington is becoming an active equity investor in critical materials.

For lithium bulls, Thacker Pass is now about politics as much as chemistry.

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