U.S. Government Support Boosts Lithium Stocks: Standard Lithium, Lithium Americas See Share Price Rise
Standard Lithium and Lithium Americas, two companies with significant U.S. ties, have seen their stocks rise recently. This follows reports of potential U.S. government support and investment, particularly for Lithium Americas.
Standard Lithium, currently benefiting from political support and government funding, including a $225 million grant, has not yet received direct equity participation from the U.S. government. However, the government's strategic interest in securing domestic lithium supply chains suggests potential future investment.
Both companies have substantial U.S. ties, with Lithium Americas' mine in Nevada and Standard Lithium's operations in Arkansas. Standard Lithium's stock (SLI) has increased, likely due to assumptions about potential U.S. government investment. Meanwhile, Lithium Americas' stock (LAC) rose after Reuters reported potential U.S. government investment, with investors presuming government support would make the company less likely to fail.
While both companies are years away from becoming viable and their profitability is uncertain, the U.S. government plans to renegotiate a $2.3 billion loan to Lithium Americas, requiring a 10% stake in the company. Lithium Americas is expected to begin producing revenue in 2027, a year earlier than Standard Lithium's projected 2028 revenue start. The potential for government support and investment has sparked optimism among investors, driving up stock prices for both companies.
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