One of the stocks that has been on an absolute tear in recent months is Lithium Americas (NYSE:LAC). Indeed, LAC stock has risen from around $14 at the start of August to nearly $24 today. This move includes an increase of nearly 15% today in LAC stock.
As investors might guess, Lithium Americas is a major player in lithium production in the Americas. As fellow InvestorPlace contributor Samual O’Brient pointed out in a recent piece, lithium is becoming viewed as “the new oil” among many investors. The importance of this compound in the production of batteries is obvious, given the electrification we’re seeing in this new economy.
Accordingly, Lithium Americas is a company many investors have gravitated toward of late. Of note, the company’s proposed Thacker Pass mine in Nevada would be one of the biggest lithium mining projects in the United States.
However, as we’ve seen with various mining projects domestically, getting approval isn’t always an easy task. For Lithium Americas, this is a company that’s been battling various legal issues. In particular, the ability of the company to begin production has run into some road blocks recently.
Let’s dive into why LAC stock is starting to see some real momentum.
LAC Stock Soaring on Legal Victory
As many analysts have pointed out, the Thacker Pass mine is really the crown jewel investors are focused on right now. What could be the largest lithium mine in America, there’s a tremendous long-term runway for growth. That is, should the political environment remain friendly toward battery development domestically. Given President Joe Biden’s infrastructure spending plans, investors hope to gain via investing in picks-and-shovels plays in the electric vehicle (EV) sector.
Over the past two weeks, LAC stock has risen dramatically on news that a judge has denied a preliminary injunction on the Thacker Pass mine. Native American tribes were looking to impose this injunction on the basis of land rights and environmental concerns.
However, the judge approved excavation work earlier in July. And earlier this month, reports were that the judge would be handing down a final decision by early 2022 in favor of Lithium Americas.
While there’s still time for things to turn sideways again, it appears things are looking up for investors in LAC stock. This project is on the move again. And absent any additional stoppages, things seem to be on track.
Thus, LAC stock is one that investors looking for risk appear to be adding to right now. It appears this momentum is strong. Accordingly, this is a stock that’s on my watch list now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.