Why Lithium Americas Stock Just Jumped 13%
Shares of Lithium Americas (NYSE: LAC), a start-up miner of lithium for use in electric-car batteries, surged 13% through 10:45 a.m. ET on Tuesday after the company announced a huge strategic partnership with General Motors (NYSE: GM).
The miner says GM has agreed to invest $650 million to support development of Lithium Americas' Thacker Pass project in Humboldt County, Nevada. The miner, in turn, has promised to supply GM with lithium extracted from Phase 1 of the project for at least 10 years, and potentially as long as the next 15 years.
What the miner calls the largest-ever investment by an automaker to produce battery raw materials will give GM access to "the largest known lithium resource in the U.S." It will also make GM the largest shareholder of Lithium Americas stock.
Source Fool.com
