Why Lithium Americas Stock Is Up Today

Lithium Americas Corp. LAC shares are trading higher Thursday after the company announced it has received a conditional commitment from the U.S. Department of Energy for financing the construction of the processing facilities at Thacker Pass.

The Details:

Lithium Americas received a conditional commitment for a $2.26 billion loan under the Advanced Technology Vehicles Manufacturing (ATVM) loan program intended to help finance the construction of Thacker Pass, targeted to produce an initial 40,000 tonnes per year of battery grade lithium carbonate.

“The United States has an incredible opportunity to lead the next chapter of global electrification in a way that both strengthens our battery supply chains and ensures that the economic benefits are directed toward American workers, companies and communities,” said Jonathan Evans, CEO of Lithium Americas.

“The ATVM Loan Conditional Commitment announced today by the DOE is a significant milestone for Thacker Pass, which will help meet the growing domestic need for lithium chemicals and strengthen our nation’s security,” Evans added.

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Is LAC A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Lithium Americas‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Lithium Americas LAC does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 14.63%, you'll need to buy a share of AGNC Investment by the Mar. 27, 2024. Once done, you can expect to receive a nominal payout of $0.12 on April 9, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Lithium Americas will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

LAC Price Action: According to Benzinga Pro, Lithium Americas shares are up 12.2% at $6.43 at the time of publication.

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