U.S.-listed shares of Lithium Americas ( LAC-N , LAC-T ) surged more than 70 per cent in premarket trading on Wednesday after a report said the Trump administration was seeking an equity stake of up to 10 per cent in the miner, the latest sign of involvement in industries the government sees as critical to national security.

Reuters reported late on Tuesday, citing two people familiar with the discussions, that the administration was discussing taking the stake in the company as part of talks to renegotiate a US$2.26-billion government loan for its Thacker Pass lithium mine.

“Markets can view equity stakes as a leading indicator of favorable ROIC (return on invested capital)... the incentive for taking equity stakes seem significantly higher than withdrawing funding,” said analysts a

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