Lithium Americas Corp (LAC:CA) (LAC)
Analyst Update
Jefferies has lowered its 12 month target price on Lithium Americas to $7 from $8, reflecting heightened uncertainty surrounding the company’s flagship Thacker Pass lithium project in Nevada. The revision comes as questions persist over the timing and structure of a potential U.S. Department of Energy loan, which is seen as critical to advancing project financing.
However, the stock is currently surging after reports that the Trump administration is seeking an equity stake in the company.
Additionally, ongoing negotiations with General Motors (GM), a key strategic partner in the project, have introduced further risk around the pace of development and the scale of GM’s long-term commitment. While the Thacker Pass deposit remains one of the largest lithium resources in North America and carries strategic importance amid U.S. efforts to secure domestic battery supply chains, Jefferies flagged execution risks and financing hurdles as reasons for a more cautious stance.
The firm noted that while long-term lithium demand fundamentals tied to EV adoption remain supportive, near-term headwinds from weaker lithium pricing, rising project costs, and regulatory complexities weigh on sentiment. Until there is greater clarity on both government loan approval and the outcome of negotiations with GM, Jefferies sees limited upside in the stock, based on fundamentals.
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