LAC - Lithium Americas: Load Up On Lithium Weakness
2024-03-14 16:36:08 ET
Summary
- Lithium Americas Corp. is poised to bring a lithium mine online when EV demand returns, despite the current weakness in the market.
- The company has received tentative approval for a $2.26 billion loan from the U.S. DOE, along with an investment from General Motors, to fund the construction of the Thacker Pass lithium mine.
- Despite the current low lithium prices, the company has the potential to generate significant cash flow and annual adjusted EBITDA in excess of its market cap.
The sudden weakness in electric vehicle ("EV") demand has knocked down lithium stocks, but a company like Lithium Americas Corp. ( LAC ) is ultimately poised to bring a lithium mine online when demand is expected to return. The long-term EV story hasn't been altered as some range anxiety and buyer incentives are resolved over time. My investment thesis is ultra-Bullish on the stock trading at the lows and de-risked with a DOE loan to fund mine development....
Lithium Americas: Load Up On Lithium Weakness