Will Lithium Americas (LAC) Stock Maintain its Upward Trajectory in 2021?

Lithium Americas Corp. (NYSE:LAC) is a rapidly growing junior lithium mining company based in Canada. It is an advanced-stage lithium developer working on two key projects including Thacker Pass in Nevada, U.S., and Cauchari-Olaroz in Argentina. LAC has complete ownership of Thacker Pass, which is one of the biggest known lithium resources in the U.S. On the other hand, Cauchari is also a big lithium brine resource and LAC owns about 49 percent of the project.

LAC’s future growth mainly depends on the demand for lithium in the coming years. The company, which started trading on NYSE in January 2018, performed exceptionally well in 2020. Its stock value skyrocketed over 300 percent during the previous year, mainly due to increasing optimism about the future of electric vehicles (EV). Since lithium is needed to assemble the lithium-ion batteries used in EVs, the growth of lithium stocks like LAC also benefitted from the boom in the global EV market last year.

Lithium Americas recently announced that the U.S. Bureau of Land Management has approved its Thacker Pass lithium mine. The company now plans to seek funding for the project. It expects to start lithium production at the Thacker Pass site during the second half of 2022. The production will help the company to capitalize on the lucrative opportunities offered by the EV industry.

LAC shares skyrocketed 18.35 percent on Friday following the news. The stock once again soared more than 30 percent in the mid-day trading Tuesday on a massive volume of 19 million shares, as compared to the daily average volume of around 5 million shares. Overall, LAC share price has jumped about 116 percent so far this year, including today’s gain.