Canada-based Lithium Americas Corp (NYSE:LAC) has split into two separate, publicly traded companies as of today. Lithium Argentina Corp (NYSE:LAAC) owns the company’s assets in the South American country, while the new Lithium Americas Corp controls the company’s lithium project in Nevada. LAC stock is climbing 17% in early trading, while LAAC stock is retreating 2.6%.
More About the Two New Companies
Lithium Argentina has a 44.8% stake in a lithium project called Caucharí-Olaroz, which is located in the South American country. LAAC is concentrating on commercializing the mine there and is researching two other locations in Argentina at which the firm may build lithium mines in the future.
The new Lithium Americas will seek to advance the company’s “lithium project” in Thacker Pass, Nevada. LAC owns 100% of the assets at Thacker Pass. Last summer, Lithium Americas started building a mine in the location, which is near Nevada’s border with Oregon.
The region in which the mine is being built is “believed to hold one of the biggest lithium deposits in the world,” The Verge reported.
Lithium Americas reportedly said that it had carried out the split in order to enable it to “cut ties” with Chinese firm Ganfeng Lithium Group, which had been one of its largest shareholders. LAC wanted to end its relationship with Ganfeng due to tensions between the U.S. and China.
General Motors and LAC Stock
General Motors (NYSE:GM) has invested $650 million in LAC, and the firm is using the funds to build its mine there. The automaker has agreed to purchase all of the lithium derived from the mine. Slated to start producing the mineral in 2026, the project is expected to commercialize about 40,000 tonnes of lithium annually.
GM now owns over 20% of LAC stock, the lithium miner reported.
On the date of publication, Larry Ramer 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.
