New Lithium Americas Price Target as Rare Earths Surge

On Tuesday morning, Lithium Americas (LAC)  ticked as high as $9.69, becoming yet another one of our "Stocks Under $10" stocks that has eclipsed at least one target price this glorious summer/autumn of 2025. 

No new news. As miners and refiners of rare earths, critical minerals and, yes, lithium java soared, Lithium Americas has gotten in on the action. For this stock in particular, the latest sustained surge started two weeks ago with a push from the U.S. government.

Readers may recall that the firm reached an agreement in principle with the Department of Energy to receive the first draw of $435 million on a previously announced $2.26 billion loan that had been secured not under this administration that has crossed into private sector investment, but during the Biden administration. As part of this deal, the Department of Energy will end up taking on a 5% equity stake in the company through warrants to buy common stock at an exercise price of $0.01 per share.

The Department will also receive a 5% economic stake in the Thacker Pass project through warrants also bearing an exercise price of $0.01. On top of that, the DOE has agreed to defer $182 million worth of debt servicing costs for the firm over the first five years of the loan. Thacker Pass in Nevada is the world's largest known measured lithium resource and reserve.

The Charts​

This is the double bottom pattern of bullish reversal that we showed you a couple of weeks ago​. That's where our old $9.50 target price came from. This is what we now see:

Now, we see a large cup pattern that has added a handle creating a ​$9.50 pivot. The indicators are still strong though the stock is seeing some profit taking on Tuesday afternoon. This will of course also take my target price higher.

Lithium Americas (LAC)

Target Price: $12, up from $9.50

Pivot: $9.50

Add: Down to the 21-day EMA (currently $6.60)

Panic: Loss of 50-day SMA (currently $4.30)

At the time of publication, Guilfoyle was long LAC equity.