CA - Lithium Americas jumps after favorable court ruling on Thacker Pass lithium mine

Lithium Americas ( NYSE: LAC ) rose 10% in premarket trading after a U.S. district judge in Nevada largely upheld the federal government's decision to approve its Thacker Pass lithium mine after challenges from environmental and other groups.

The favorable ruling confirmed the permitting process for Thacker Pass was conducted "thoroughly and responsibly," and resulted in there being no impediment to starting construction, the company said in a statement on Tuesday.

The court ordered the Bureau of Land Management to consider one issue under the mining law relating to the area designated for waste storage and tailings and didn't impose any restrictions expected to impact the construction timeline. Lithium Americas ( LAC ) said its plans to work closely with the BLM to complete the required follow-up work.

The ruling is an important for Lithium Americas (NYSE: LAC ) as the company wants to be able to start its mining/refining operation at Thacker Pass sooner rather than later.

“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,” Jonathan Evans, President and CEO of Lithium Americas ( LAC ) said in the statement. “The favorable ruling leaves in place the final regulatory approval needed in moving Thacker Pass into construction.”

The federal court judge's ruling comes after the judge held a hearing on the case about a month ago.

"The Court has also determined this is the rare case where remand without vacatur is appropriate primarily because the records suggest BLM could fix the error the Court identifies and Plaintiffs fail in their other legal challenges to BLM’s decision to approve the Project," Judge Mirandu Du wrote in her court decision on Monday.

The court ruling  comes after after General Motors ( GM ) last Tuesday said it would jointly invest to develop the Thacker Pass mine in Nevada. GM said it will make a $650M equity investment in Lithium Americas ( LAC ), which the companies said represent the largest-ever investment by an automaker to produce battery raw materials.

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