Something big is brewing in the markets, and it’s tied to one of the most critical resources of the next decade.
Government officials are stepping in, major corporations are locking up supply…
And shares of one small company almost doubled in after-hours trading!
That happened on Wednesday…
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AgriFORCE Growing Systems (NASDAQ: AGRI) surged 225%* after dropping news it would become the first Avalanche (a cryptocurrency) -focused company on NASDAQ.
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Long story short, yet another sector is heating up…
For traders, this isn’t just another headline. It’s the kind of shift that can fuel massive volatility and big opportunity.
Lithium isn’t just another commodity but the backbone of the electric vehicle (EV) revolution, energy storage, and even consumer electronics.
And right now, this critical metal is back in the spotlight after fresh headlines that could reshape the U.S. supply chain.
Here’s Wednesday’s Reuters headline:
Table of Contents
Big News: Washington Eyes a Stake in Lithium Americas
According to Reuters, the Trump administration is negotiating to take as much as a 10% equity stake in Lithium Americas (NYSE: LAC) as it revisits the company’s $2.26 billion Department of Energy loan for the Thacker Pass project.
Why does this matter?
- Thacker Pass is projected to be the largest source of lithium in the Western Hemisphere when it opens in 2028. Phase one alone is expected to produce 40,000 metric tons of battery-grade lithium carbonate annually. That’s enough to power 800,000 EVs a year.
- General Motors (NYSE: GM) has already invested $625 million for a 38% stake and secured rights to purchase lithium from the mine for up to 20 years.
- The project represents Washington’s long-standing goal, which is to cut U.S. dependence on China, which currently refines more than 75% of the world’s lithium into battery-grade material.
Traders were certainly happy with the news…
Shares of LAC spiked 98%* in after-hours trading, a sharp reminder of how quickly this sector can move when headlines hit.
LAC 3-Day, 5-Minute Candles Chart; SteadyTrade
The Ripple Effects
Not surprisingly, the surge in LAC hasn’t gone unnoticed by the broader sector. Lithium sympathy plays caught bids as traders piled into anything tied to the space.
While the moves weren’t as explosive as LAC’s, it shows how quickly capital rotates into related tickers when a major catalyst hits…
This is a reminder that in hot sectors, the sympathy trade can sometimes deliver just as much opportunity as the headline stock.
My Lithium Watchlist
Besides Lithium Americas (NYSE: LAC), here are a few of the lithium and related names on my radar…
Some of these tickers are large-caps and are too expensive for many traders. If that’s the case for you, options are always an alternative.
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Albemarle Corporation (NYSE: ALB):
ALB is the largest U.S. producer and a global heavyweight. It moves more slowly than the smaller caps, but is critical to watch as a sentiment gauge for the entire sector.
ALB One-Month, Hourly Candles Chart; SteadyTrade
MP Materials (NYSE: MP):
While more focused on rare earths, MP is part of the same “strategic resources” basket the U.S. government is backing.
MP One-Month, Hourly Candles Chart; SteadyTrade
Ioneer Ltd (OTC: GSCCF):
Developing the Rhyolite Ridge project in Nevada, Ioneer is another U.S. name that could benefit from government support.
GSCCF is an OTC stock and is suitable for day trades only.
OTC stocks come with their own set of risks. Before trading them, check out my blog post on how to trade these types of tickers.
GSCCF One-Month, Hourly Candles Chart; SteadyTrade
Standard Lithium Ltd (NYSE: SLI):
With projects in Arkansas, Standard Lithium is pushing direct lithium extraction (DLE) technology. It’s still a speculative name, but potentially disruptive.
As a penny stock, SLI can be volatile and is also for day trading only. Do not hold overnight.
SLI One-Month, Hourly Candles Chart; SteadyTrade
My Final Thoughts…
Lithium stocks can move fast, especially when headlines about government deals, loans, or supply chain shifts hit the wire.
But remember, don’t chase the hype. Instead, build your watchlist now, understand the key levels, and be ready to react when the next headline drops.
Lithium is part of a global megatrend…
And as Washington tightens its grip on domestic supply, expect more volatility, more opportunity, and more names to keep on your radar.
Have a great weekend, everyone. See you back here on Monday.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Why is your latest hot trade moving slower than you thought it would?
Small cap stocks are on fire right now. Learn more about them here.
Sometimes it’s okay to take a break from trading. In fact, it’s healthy!