DOE Supports Lithium Americas (LAC) As New Investor

Lithium Americas Corp. (NYSE:LAC) is one of the best high-upside materials stocks to buy. On February 3, Lithium Americas Corp. (NYSE:LAC) announced that it has finalized a series of agreements with the U.S. Department of Energy and General Motors, under which the DOE becomes an investor in Lithium Americas and its joint venture with General Motors.

Under the agreements, implemented on January 30, Lithium Americas Corp. (NYSE:LAC) issued the DOE a warrant to purchase up to 18,268,687 common shares, representing 5% of the company’s outstanding shares. In addition, the joint venture between Lithium Americas Corp. (NYSE:LAC) and General Motors issued a separate warrant for Non-Voting Units representing a 5% economic interest in the joint venture. Both warrants are exercisable for ten years and subject to anti-dilution adjustments.

A registration rights agreement obliges Lithium Americas Corp. (NYSE:LAC) to register for resale the common shares issuable upon exercise of these warrants, while a put, call and exchange agreement gives the DOE the right to sell or exchange its joint venture warrant interests to or through GM Holdings, and grants GM Holdings a corresponding call right after substantial completion milestones at the Thacker Pass project.

Lithium Americas Corp. (NYSE:LAC) is a lithium mining company that focuses on developing, building, and operating lithium deposits and chemical processing facilities in the United States and Canada.

While we acknowledge the potential of LAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.