Lithium Americas (LAC) is exploding.
In the first 10 minutes of trading, LAC saw volume spike to 2.77 million, as compared to daily average volume of 2.36 million. The stock is also up by $3.11 to $26.57. From here, we’d like to see LAC closer to $30 a share, near-term. Better, we’ve been talking about LAC for some time.
And for it to finally start moving – as it should – is exciting.
Just today, the company announced it received a favorable ruling from the US District Court, District of Nevada for the issuance of the Record of Decision relating to the Company’s 100%-owned Thacker Pass project located in Humboldt Country, Nevada.
The favorable ruling by the Federal Court confirms the permitting process for Thacker Pass was conducted thoroughly and responsibly, and results in there being no impediment to commencing construction. The Federal Court ordered the BLM to consider one issue under the mining law relating to the area designated for waste storage and tailings and did not impose any restrictions expected to impact the construction timeline.
“We are pleased that the Federal Court has recognized the BLM’s decision to issue the Federal Permit, reflecting our considerable efforts to ensure Thacker Pass is developed responsibly and for the benefit of all stakeholders,” said Jonathan Evans, President and CEO. “The favorable ruling leaves in place the final regulatory approval needed in moving Thacker Pass into construction.”
This is substantial news, and could send shares of LAC even higher.
Even better, once construction gets under way, the sky’s the limit for LAC. For one, the company could see big demand. After all, according to USA Today, electric vehicles make up about 5% on new auto sales as of 2022. This year, S&P Global Mobility sees that hitting 8%, 15% by 2025, and 37% by the time 2030 rolls around
Two, Tesla’s price cuts are bullish for lithium prices. Lower prices, coupled with U.S. tax credits for electric vehicles could send prices rocketing higher, as well. Three, the Inflation Reduction Act of 2022 is expected to kickstart the renewable energy boom.