Lithium Americas Tests Investor Patience Despite Ambitious Projects, Key Partnership With GM

Lithium Americas Corp LAC is well on track with its ambitious Thacker Pass project. The project involves thorough preparation, substantial financial investment, and key partnerships, including a crucial alliance with General Motors Co GM, which the company has in place.

However, the stock continues to test investor patience.

The Oregon-Nevada border contains between 40 million to 120 million tons of commercially retrievable lithium. Lithium, being a key component of electric vehicle and smartphone batteries, Lithium Americas stands as one of the key beneficiaries of the ESG boom.

It owns the largest U.S. lithium source in the Thacker Pass project in Nevada. The company’s Thacker Pass project, once in production, would be producing battery-grade lithium. Production will begin in 2026 with an eventual production capacity of 80,000 tons per year.

With solid backing from the Department of Energy, the project would be delivering substantial economic advantages to Humboldt County and Nevada, positioning itself as a pivotal player in the regional economy. As of Q3, the company’s financial position showed that it is well-prepared to achieve upcoming project milestones.

Also Read: China’s Lithium Prices Plunge To 26-Month Low: How Have Mining Stocks Fared?

What Do The Charts Indicate?

The charts indicate no green shoots in sight for this Lithium producer yet. The stock has been flirting around the $6.5 to $7.5 per share range for some time now. There is also no apparent momentum in sight to trigger a turnaround. The stock is down about 15% over the past month, and continues to test investor patience.

On Dec. 11, JPMorgan’s Bill Peterson initiated coverage on the stock with a target price of $7 and a neutral rating. The stock is currently trading at around $6.15.

Following the split into two entities pursuant to their reorganization in October, Lithium Americas (Argentina) Corp LAAC appears to be more favorably placed entity. Investors expect less uncertainly and more medium-term returns from Lithium Americas (Argentina) Corp.

Meanwhile, Lithium Americas still has more headway to make as it moves towards production in 2026.

Related: Lithium Americas (Argentina) Rises As Key Player, Strategic Choice In Evolving Lithium Sector