Lithium Sparks Interest Again Despite Tepid Short-Term Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 29 2025
0mins
Should l Buy LAC?
Source: Benzinga
Lithium Market Resurgence: The lithium market is gaining attention following the Trump administration's consideration of a stake in Lithium Americas, which has seen its stock price nearly double recently. The Thacker Pass project in Nevada, a key resource, is expected to produce significant lithium output, with General Motors holding a substantial stake.
Emerging Lithium Resources: New lithium resources are being explored in Texas and the Northwest, with the Smackover Formation showing high lithium-in-brine grades and the McDermitt Caldera estimated to contain millions of tons of lithium. However, environmental concerns and local community impacts pose risks to these developments.
Market Price Forecasts: Goldman Sachs predicts lithium prices will average $8,900 per ton by 2026, with expectations of oversupply keeping prices down before a potential rebound in 2027. This forecast indicates a significant drop from the 2022 peak prices of nearly $80,000 per ton.
Cautious Investment Approach: Given the fluctuating market conditions and environmental implications, a cost-conscious approach is essential for evaluating the potential of new lithium projects, as the market remains tempered despite the growing interest in lithium resources.
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Analyst Views on LAC
Wall Street analysts forecast LAC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LAC is 5.77 USD with a low forecast of 4.73 USD and a high forecast of 8.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
1 Buy
6 Hold
1 Sell
Hold
Current: 4.410
Low
4.73
Averages
5.77
High
8.00
Current: 4.410
Low
4.73
Averages
5.77
High
8.00
About LAC
Lithium Americas Corp. is a Canada-based lithium company. The Company focused on developing, building, and operating lithium deposits and chemical processing facilities. The Company’s flagship asset is Thacker Pass, a sedimentary-based lithium deposit located in the McDermitt Caldera in Humboldt County, in northern Nevada. The Company is focused on developing the 100%-owned Thacker Pass lithium project in northern Nevada, the United States of America. Thacker Pass is approximately 100 kilometers (km) north-northwest of Winnemucca, Nevada, approximately 33 km west-northwest of Orovada, Nevada, and 33 km due south of the Oregon border. The Thacker Pass area encompasses approximately 7,900 hectares (ha) and lies within and is surrounded by public lands. The Company's subsidiaries are LAC Management LLC, Lithium Nevada Ventures LLC, KV Project LLC and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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